VAT deferral new payment scheme – opt-in from 23 February 2021

If your business has deferred VAT payments due between 20 March to 30 June 2020 and you still have payments to make, you can opt into the VAT deferral new payment scheme to pay your deferred VAT over a longer period.

The date the scheme is open and the re-payment period

The payment scheme opened on 23 February 2021 (from mid-March for those on the annual VAT scheme – date still to be notified) and will close at the end of June 2021. If you opt in, you can make up to 11 smaller monthly instalments, interest free.

The length of time you can choose to make the payments over depends on when you make a claim. So if you do not claim until June, you will not be able to spread the payments over the full 11 months.

Who can make a claim and how to make it

You can opt in to the scheme online without the need to call HM Revenue and Customs (HMRC) via your VAT account. Please note that agents cannot apply for this scheme on their clients’ behalf.

If you can pay your deferred VAT by 31 March 2021, HMRC advises you should do so.

If you need more help to pay your deferred VAT, you should contact HMRC directly.

Last updated: 01.03.2021

Whilst the information in this document is correct, you should always obtain individual advice from a qualified accountant.