• Date

    22 Jan 2021
  • Category

    Tax, VAT & Indirect Tax

HMRC announce additional deferred VAT payments - action required before 29 January

We previously highlighted that HMRC had allowed the deferment of VAT return payments for the February, March and April accounting periods until March 2022. (May 2020 accounting periods were included for those using Payment on Account procedures or with Non-Standard Tax Periods). 

Please remember you need to do this yourself, your agent cannot do this for you. The online opt-in process is still not available.

HMRC has now announced that they will also allow error corrections and VAT assessments issued for the same periods to be deferred. To include these payments you need to contact the COVID-19 helpline and ask HMRC to include the extra error correction payments in your deferred VAT balance before 29 January 2021.

Corrections and assessments can only be deferred if:

  • HMRC has processed your error correction
  • you have received a Statement of Account confirming the balance.

You may not be able to defer corrections and assessments if you have not received your Statement of Account by 29 January 2021.

You cannot include extra payments after you have opted in. You will need to pay these amounts to HMRC by 31 March 2021. 

To view the full notice from HMRC, please click here.

If you require further advice and guidance on any areas mentioned above, please speak with your usual Azets contact or contact a member of our VAT & Indirect Tax team

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Veronica Donnelly

Partner Glasgow
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