As part of the Government’s response to COVID-19, businesses were given the option to defer their VAT payments between 20 March and 30 June.
In June HMRC wrote to businesses to remind them the deferral scheme was ending (on 30 June) and VAT returns with a payment due date after 30 June must now be paid as normal.
Businesses that have deferred payments, and who normally pay by direct debit, should now set up a new one via their Business Tax Account (BTA). The screens below show the step by step process to do this. Please allow 3 working days before payment is due for direct debits set up via a BTA.
Please encourage your clients to check the email address given on these screens is correct (or input a new email address). Email addresses are required as part of banking regulations – HMRC will not use the email address given here to contact clients unless it is about their direct debit.
If more than one client’s signature is required on the direct debit instruction use the paper form – there’s a specific MTD VAT C9 form on GOV.UK at:
You must give your business VAT registration number and an email address in the ‘For HM Revenue and Customs official use only’ section of the form.
There are different SUN numbers (used by the BACS system) on each form so it’s important you use the correct one.
Paper forms take longer to process so please allow time for this when setting up a new direct debit.
HMRC’s Time To Pay is still available for businesses struggling to pay their tax bills. See the guidance on GOV.UK at: https://www.gov.uk/difficulties-paying-hmrc
Any deferred payments should be paid in full on or before 31 March 2021.
Business can make ad hoc payments or additional payments with their subsequent VAT returns if they wish, to reduce the amount outstanding.
There is guidance on GOV.UK at https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19
We are encouraging businesses not to call HMRC if possible so that our phones lines are available to those that need them most.