VAT deferral payment scheme deadline 21 June 2021 20th May 2021 One of the ways government helped businesses in 2020 was to allow them to defer paying VAT liabilities due between March and June that year. Those taking advantage of this had until 31 March 2021 to pay. In September 2020, the Chancellor announced the VAT deferral payment scheme. Instead of paying in full by 31 March 2021, businesses could make 11 equal instalments and no interest or penalties would be applied. All other VAT returns and payments must still be dealt with on time. Businesses can choose the number of instalments, up to 11, as long as all the VAT is repaid by 31 March 2022. Instalments are collected by Direct Debit. The deadline for signing up to the scheme is now approaching. You can apply online by 21 June or by phoning HMRC on 0800 024 1222 by 30 June 2021 if you need extra help to pay.