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


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