Deadline looms to join VAT Deferral New Payment Scheme


Businesses that deferred VAT contributions last year have less than a month left to join a scheme that allows repayment of the tax to be spread into monthly installments under the VAT Deferral New Payment Scheme.

HMRC has confirmed the online portal for the payment scheme will close on 21 June 2021.


Over half a million businesses deferred £34 billion in VAT payments due between March and June 2020 under the VAT Payment Deferral Scheme.

Businesses had until 31 March 2021 to pay this deferred VAT or, if they could not afford to do so, they could go online from 23 February to set up a new payment scheme and pay by monthly installments to spread the cost.

Commenting on the scheme, Jim Harra, HMRC’s chief executive, said: “Businesses that deferred paying their VAT last spring have until 21 June to join the VAT Deferral New Payment Scheme online. They should act now to avoid missing out on this opportunity to spread payment of their deferred VAT across monthly, interest-free installments.

“The new payment scheme is part of the government package of support worth over £350 billion to help protect millions of jobs and businesses during the pandemic and as we emerge on the path to recovery.

“HMRC will continue to do all we can to help businesses as they re-open and re-build.”

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