Coronavirus VAT Deferral Payment Scheme

If you deferred VAT payments due between 20 March 2020 and 30 June 2020 and still have payments to make, you have three options:

• Pay the deferred VAT in full, on or before 31 March 2021
• join the VAT deferral new payment scheme – the online service is open between 23 February 2021 and 21 June 2021
• contact HMRC on Telephone: 0800 024 1222 by 30 June 2021 if you need extra help to pay

If you do not choose one of these options you may be charged a penalty and interest.

If you join the VAT deferral new payment scheme by 19th March you can spread the payments over a maximum of eleven equal instalments, interest free. The longer you delay in joining the scheme the fewer instalments will be available which will increase the amount you must pay each month.

Before joining the scheme you must create a government gateway account (if you don’t already have one) and your VAT Returns must be up to date. Please note that JRW cannot create the government gateway account for you and we cannot register you for the payment scheme. See links below to the HMRC web pages for creating a government gateway account and for joining the payment scheme:

Register with HMRC Online Services
Guidance Deferral of VAT payments due to Covid-19

A coronavirus helpline can help with any questions: 0800 024 1222 and the team at JRW are always happy to assist with any questions that you may have.

John Craig, Associate
VAT Expert