VAT deferral

If you deferred your VAT payments due between 20‌‌ ‌March and 30 June 2020 and still have payments to make, they should pay by 31‌‌ ‌March if you can.

If you cannot afford to pay by 31‌‌ ‌March this year, you can now join the online VAT deferral new payment scheme to spread the payment.

The new scheme lets you pay their deferred VAT in equal monthly instalments, interest free. You can spread payment across a number of months, depending when you joined – the earlier you join, the more months you have to spread the payments across:

  • 11 instalments if you join by 19‌‌ ‌March
  • 10 instalments if you join by 21‌‌ ‌April
  • 9 instalments if you join by 19‌‌ ‌May
  • 8 instalments if you join by 21‌‌ ‌June.

You can join the scheme quickly and simply online, without the need to call HMRC. To find out more information, including the things you need to do before joining, go to

The online service will close on 21‌‌ ‌June 2021 – if you want to join the scheme online, you must do so before this date.

If you are on the VAT Annual Accounting Scheme or the VAT Payment on Account Scheme, you’ll be able to join the new payment scheme later in Marc, more information will be available on this shortly.

If you have a Time to Pay arrangement already in place for your deferred VAT, you cannot use the online scheme. If you want to amend you Time to Pay arrangement, you should contact HMRC to do this.