VAT which is payable from 22/3/20 to 30/06/20 is deferred until 31 March 2021. Set out below are a few key features of the payment deferral:

• A claim does not have to be made in order to obtain the deferral
• Businesses can continue to make payments if they wish.
• VAT returns need to be submitted as usual.
• Businesses who pay their VAT by direct debit, will need to cancel their direct debit, otherwise HMRC will continue to take payment.
• VAT refunds will continue to be paid by HMRC.
• Provided the deferred VAT payment is made to HMRC by the end of March 2021, no interest will be charged by HMRC.