Deferral of VAT payments due to Coronavirus (COVID-19)

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

  • pay the deferred VAT in full on or before 31 March 2021
  • opt in to the VAT deferral new payment scheme when it launches in 2021
  • contact HMRC if you need more help to pay

You can pay your deferred VAT in full by 31 March 2021.

You do not need to contact HMRC.

You cannot opt in to the new scheme yet. The online opt in process will be available in early 2021. You must opt in yourself, your agent cannot do this for you.

Instead of paying the full amount by the end of March 2021, you can make up to 11 smaller monthly instalments, interest free. All instalments must be paid by the end of March 2022.

The scheme will allow you to:

  • pay your deferred VAT in instalments without adding interest
  • select the number of instalments from 2 to 11 equal monthly payments

To use this scheme you must:

  • still have deferred VAT to pay
  • be up to date with your VAT returns
  • opt in before the end of March 2021
  • pay the first instalment before the end of March 2021
  • be able to pay the deferred VAT by Direct Debit

If you opt in to the scheme, you can still have a time to pay arrangement for other HMRC debts and outstanding tax.

For further information on deferral of VAT payments visit: https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19

Deferral of Self-Assessment payments due to Coronavirus (COVID-19)

If you receive a Self Assessment statement before 31 January 2021 it may still show the deferred July 2020 payment on account as due and payable now.

You can still pay your deferred July 2020 payment on account any time up to 31 January 2021. You’ll not have interest or a penalty as long as you pay in full by that date.

Some statements may also show interest accruing if you have any payments on account. This interest will only apply to those other payments, not your deferred July 2020 payment on account.

For further information on deferral of Self-Assessment payments visit: https://www.gov.uk/pay-self-assessment-tax-bill

If you cannot pay your tax bill on time

Because of coronavirus you may be able to delay (defer) your Self Assessment payment on account due in July 2020 until 31 January 2021.

Contact the HMRC coronavirus (COVID-19) helpline if you cannot pay any other tax bills because of coronavirus.

If you are self-employed and your business has been affected by coronavirus (COVID-19), you may be able to claim a grant through the Self-Employment Income Support Scheme.

For further information visit: https://www.gov.uk/difficulties-paying-hmrc

 



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