News Advice

Pay VAT deferred due to COVID-19

A new payment scheme is open for all businesses who deferred paying VAT due between 20 March and 30 June 2020 due to COVID-19.

The government originally said repayment of this VAT would be required by 31 March 2021 but the new scheme lets businesses pay deferred VAT in equal monthly installments, interest-free.

If you have not yet joined the scheme, then you must do so by 21 June 2021 and then you can spread your payments across 8 monthly installments.

Businesses may be charged a 5% penalty and/or interest if they do not sign up for the VAT deferral scheme by the deadline of 21 June or pay in full by 30 June.

If businesses are still unable to pay and need more time, they should contact HMRC as soon as possible.

If you need help, please call Kent & Medway Growth Hub on 03333 602 300. More information is available on HMRC’s website here.