Payroll Legislation

How to Use the VAT Deferral New Payment Scheme

Legislation

How to Use the VAT Deferral New Payment Scheme

Due Date

21 June 2021

Summary

If you deferred VAT payments due between 20 March and 30 June 2020 and have been unable to pay in full by 31 March 2021, you can use the online VAT deferral new payment scheme to spread your payment.

The new scheme lets you pay your deferred VAT in equal monthly instalments, interest free. You can spread your payments across a number of months depending on when you join – the later you join, the fewer instalments are available to you:

  • 10 instalments if you join by 21 April 2021
  • 9 instalments if you join by 19 May 2021
  • 8 instalments if you join by 21 June 2021

You can join the scheme quickly and simply online without the need to call HMRC. The online service will close on 21 June 2021 – if you want to join the scheme online, you must do so before this date.

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