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VAT Returns to Normal

The VAT payments deferral scheme ended on 30 June 2020. 

If you are a UK VAT registered business that deferred payments between 20 March and 30 June 2020 you should pay in full all payments that fall due after 30 June. Make sure you have set up cancelled direct debits in enough time for HMRC to take payment. 

Any VAT payments you deferred between 20 March and 30 June must be paid in full before 31 March 2021 to avoid potential penalty. You can pay or make payments towards your deferred VAT balance now or at any time before the deadline. Deferred payments will not be collected via the direct debit so it is up to you to initiate payment.

 For those businesses who did not manage to cancel their direct debit, and therefore did not take advantage of the scheme, HMRC have confirmed that a refund can be claimed. The quickest way to do this is to claim through your bank via the Direct Debit Indemnity Scheme. There is no deadline for claiming the refund, other than the deferral repayment deadline of 31 March 2021.