VAT registered businesses were able to defer VAT payments, due to the arrival of Covid-19 for the periods from 20 March 2020 to 30 June 2020. Businesses that have not repaid this VAT are required to take action by 21 June 2021 to avoid a penalty.

A 5% penalty will be charged on any outstanding deferred VAT unless: 

  • Businesses have opted into the repayment scheme by 21 June 2021.
  • Business have contacted HMRC to arrange an alternative payment arrangement by 30 June 2021.
  • Any outstanding tax has been settled.

Useful guides on this topic

COVID-19: VAT deferred payments

External links

HMRC: deferral of VAT payments


Oak ad
Are you enjoying our content? 

Thousands of accountants and advisers and their clients use as their primary TAX resource.

Register with us now to receive our unique FREE Tax Planning Tips and Advice Guide & our FREE OMB Newsletter.



Comments (0)

Rated 0 out of 5 based on 0 voters
There are no comments posted here yet

Leave your comments

  1. Posting comment as a guest.
Rate this post:
Attachments (0 / 3)
Share Your Location


Enjoying the Practical Tax content on 

Sign up now to receive a unique FREE Tax Planning Tips and Advice Guide & our FREE Newsletter.

.Squirrel ad