Payment Plan

VAT Deferment Programme – Payment Plan

Set up an 11 month payment plan to pay historically deferred VAT due to Covid-19.

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

  • Pay the deferred VAT in full on or before 31 March 2021 or,
  • Opt in to the VAT deferral new payment scheme when it launches in 2021.

You cannot opt in 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 click here

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