Deferring VAT and Self-Assessment Payments

Defer your next VAT payment 

If you are VAT registered then one of the easiest things you can do is to defer your next VAT payment until 31 March 2021.  If you are a UK VAT registered business and have a VAT payment due between 20 March 2020 and 30 June 2020 then you have the option to defer that payment. 

  • You don’t need to apply to do this, it is automatically available 
  • If you normally pay your VAT by direct debit then make sure that you cancel your direct debit instruction with the bank 

Note that this does not cover VAT MOSS or import VAT payments. 

If you opt to defer your VAT payment then you will not be charged interest or penalties.  You will have to submit your VAT return on time as usual. 

HMRC will still pay VAT reclaims and refunds as normal. 

Defer your July Self-Assessment payment on account 

If you are due to make a self-assessment payment on account in July then you can defer this until 31 January 2021.  This applies to anybody who currently has to make a payment on account on 31 July, not just if you are self-employed. 

The deferment is optional, so if you can still make your July payment on account then you should do so.  However no penalties or interest for late payment will be charged if you do decide to defer payment. 

If you are worried about budgeting for the payment in January HMRC allows you to set up a budget payment plan where you pay in instalments towards the next payment. 

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