In his statement this lunchtime the Chancellor announced two measures that affect VAT.

  1. The temporary reduced rate of 5% that applies to catering, holiday accommodation and visitor attractions has been extended to 31 March 2021.
  2. Businesses that have deferred a VAT payment under the deferral scheme will be given more time to pay.  Under the original scheme the deferred payment was to be repaid by 31 March 2021 but now businesses can choose to repay it over 11 equal monthly instalments in 2021-22.  How businesses can choose this option will be announced later.