Deferring VAT

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Support for businesses through deferral of VAT

HMRC will support businesses by deferring Valued Added Tax (VAT) payments for 3 months. If you‘re self-employed, Income Tax payments due in July 2020 under the Self-Assessment system will be deferred to January 2021.


For VAT, the deferral will apply from 20 March 2020 until 30 June 2020.


All UK businesses are eligible.

How to access the scheme

This is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period. Taxpayers will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period. VAT refunds and reclaims will be paid by the government as normal.

HMRC Advice on the VAT Deferment ruling

  • VAT Returns MUST be submitted by their due dates irrespective of whether the client is taking the deferment or not.

  • This deferment applies to Quarter Ends February, March and April 2020 only at the moment. If this continues, then additional months could be included.

  • The deferment ruling means that the above quarter’s payment can be delayed until 30th June 2020, although if clients are still unable to pay at this time, they must make sure the payment is made in full by 05/04/2021. As long as it is paid by then, no penalties will apply.

  • If a client pays their VAT by direct debit and they want to defer the payment, they must cancel their direct debit themselves as if they don’t, the payment will automatically be taken as normal.