HMRC has announced an automatic deferral of VAT payments due in the period from 20 March 2020 until 30 June 2020.  The deferral is available to all VAT registered UK businesses and does not need to be applied for.  No interest will be charged on amounts deferred under this scheme.

If you usually pay your VAT by direct debit and want use the deferral option you will need to cancel your existing direct debit in time before payment is due. Remember to set up the direct debit again in time to make the next VAT payment after the deferral period.

If you are deferring a payment on account and the balancing payment is due to be made after the end of the deferral period, the balancing payment is calculated after deducting any deferred payments.

VAT returns must still be submitted as normal.

VAT repayments and refunds will be made as normal.

VAT payments due under MOSS and duty deferment arrangements must be made as normal.

The deferral does not apply to any other VAT debts, arising from an assessment or voluntary disclosure, for example. If you need time to pay for this type of debt you must contact HMRC’s coronavirus helpline on 0800 024 1222.

If you have a Time To Pay arrangement that was set up before 20 March 2020 you must continue to make the payments due under the arrangement.  If you cannot make these payments you must contact HMRC’s coronavirus helpline on 0800 024 1222.

The VAT deferred must be paid by the end of the 20/21 tax year, which will be 31 March 2021.