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COVID-19: HMRC update – deferring VAT payments

As part of the UK Government’s support for businesses during COVID-19, HMRC gave businesses the option of deferring their VAT payments if they were unable to pay on time, without incurring late payment interest or penalties. Payment of VAT falling due between 20‌‌ March and 30‌‌ June 2020 can be deferred until 31‌‌ March 2021.

You must continue to file your VAT return on time, even if you defer payment.

The option to defer paying VAT ends on 30‌‌ June 2020. This means that VAT returns with a payment due date after 30‌‌ June must be paid in full, on time.

If you haven't deferred any VAT payments, you don't need to take any further action. If you have deferred paying your VAT and normally pay by Direct Debit you should now reinstate it.

You should do this at least three working days before submitting your VAT return in order for HMRC to take payment.

Remember, any VAT payments you have deferred during this period should be paid in full on or before 31‌‌ March 2021. You can make ad hoc payments or additional payments with your subsequent VAT returns to reduce the amount outstanding, if you wish.

If you're unable to pay the VAT due and need additional time to pay, please contact HMRC before the payment is due.

For further information please visit the GOV‌‌.UK website.


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