Paying your deferred VAT

To support businesses during the pandemic, HMRC allowed VAT payments due between 20 March and 30 June to be deferred until the 31st March 2021.

Where a business took advantage of the VAT deferral, it was able to:

• Pay the deferred VAT amount in full on or before 31 March 2021 
• Opt in to a new scheme that allows a business to pay in 11 monthly instalments from March 2021. 

What is the new scheme? 

• The online opt in process for the new payment scheme will be available in February 2021. 
• The scheme allows businesses to make smaller monthly payments 
• Up to 11 regular monthly instalments can be made, interest free. 
• All instalments must be paid by the end of March 2022. 

More information on the scheme can be seen here. If you’re unable to pay your deferred VAT, please go to GOV.UK and search 'Deferred VAT'.

 Businesses that are able to pay in full before 31st March 2021 can do this by: 

• Going to GOV.UK and search 'paying VAT' 
•  Choose 'pay your VAT bill' and follow the instructions – please make sure you use the right reference. 

To see details of the amount you owe, please go to GOV.UK and search 'Business Tax Account'. 

The login for the ‘Business Tax Account’ will be the User ID and Password registered with HMRC when the business first created such an account.