Between 20 March 2020 and 30 June 2020, there was a scheme for the deferral of payment of VAT. In total, £33.5bn has been deferred.
Businesses that deferred had three options:
- Pay in full by 31 March 2021.
- Join a new payment scheme by 21 June 2021 to spread their repayments.
- By 30 June 2021, make an arrangement to pay.
In default, those business who have not paid their deferred vat payment in full, joined the new payment scheme by 21 June 2021 or made an arrangement to pay risked a 5% penalty.