As you may recall, VAT payments which fall due between 20 March and 30 June 2020 can be deferred. HMRC will not charge interest or penalties on any amount deferred during this period. If you have chosen to defer the VAT payment, this must be paid to HMRC by 31 March 2021. This means that as of 1 July 2020 you can no longer defer payments in respect of VAT returns for the quarters/months ending May 2020 onwards. VAT liability payments due after 30 June 2020 will be payable on time.
If you have cancelled your direct debit facility, after 1 July it may be worth re-activating this facility to ensure you settle the future VAT liabilities on time. After this date late payments will incur in interest charge and penalties. The following table summarises the VAT deferral:
| VAT return quarters/months end | VAT liability payment deadline | Can the VAT liability be deferred? |
| February 2020 | 7 April 2020 | YES |
| March 2020 | 7 May 2020 | YES |
| April 2020 | 7 June 2020 | YES |
| May 2020 | 7 July 2020 | NO |
| June 2020 | 7 August 2020 | NO |
| July 2020 | 7 September 2020 | NO |
| August 2020 | 7 October 2020 | NO |
| September 2020 | 7 November 2020 | NO |
| October 2020 | 7 December 2020 | NO |
| November 2020 | 7 January 2021 | NO |
| December 2020 | 7 February 2021 | NO |
Payments to HMRC in respect of the VAT deferred can be made to the following account on or before 31 March 2021:
Account Name: HMRC VAT
Account Number: 11963155
Sort Code: 08 32 00
Reference number: your 9 digit VAT registration number
It is important to use the VAT registration number as reference to the payment, as this will ensure the payment is allocated correctly by HMRC. If you are struggling to pay your tax bill on time, you can contact HMRC’s Time to Pay service on 0300 200 3835.