HMRC have finally published guidance on paying the deferred VAT and will be opening the new payment scheme on 23rd of February. Would it help to pay in instalments? If you join by the 23rd march you can pay it in 11 Instalments but payment has to be by direct debit. Pay your deferred VAT If you deferred VAT payments due between 20 March and 30 June 2020 and still have payments to make, you can: \tpay the deferred VAT in full, on or before 31 March 2021 \tjoin the VAT deferral new payment scheme \u2013 the online service is open between 23 February and21 June 2021 \tcontact HMRC on Telephone: 0800 024 1222 by 30 June if you need extra help to pay You may be charged interest or a penalty if you do not: \tpay the deferred VAT in full by 31 March 2021 \topt into the new payment scheme by 21 June 2021 \tagree extra help to pay with HMRC by 30 June 2021 The New Payment Scheme You can pay your deferred VAT in full by 31 March 2021 and you do not need to contact HMRC. If you want to join the new scheme The VAT deferral new payment scheme will be open from 23 February up to and including 21 June 2021. If you\u2019re on the VAT Annual Accounting Scheme or the VAT Payment on Account Scheme , you\u2019ll be invited to join the new payment scheme later in March 2021. The new scheme lets you: \tpay your deferred VAT in equal instalments, interest free \tchoose the number of instalments, from 2 to 11 (depending on when you join) To use the online service, you must: \tjoin the scheme yourself, your agent cannot do this for you \tstill have deferred VAT to pay \tbe up to date with your VAT returns \tjoin by 21 June 2021 \tpay the first instalment when you joinpay your instalments by Direct Debit (if want to use the scheme but cannot pay by Direct Debit, there\u2019s an alternative entry route for you) If you join the scheme, you can still have a Time to Pay arrangement for other HMRC debts and outstanding tax. The month you decide to join the scheme will determine the maximum number of instalments that are available to you. If you join the scheme in March, you\u2019ll be able to pay your deferred VAT in 11 instalments and that goes down to 8 if you join in June.. Before you join the scheme Before joining, you must: \tcreate your own Government Gateway account(if you do not already have one) \tsubmit any outstanding VAT returns from the last 4 years \u2013 otherwise you\u2019ll not be able to join the scheme \tcorrect errors on your VAT returns as soon as possible \tmake sure you know how much you owe, including the amount you originally deferred and how much you may have already pai There may be circumstances where you cannot use the online service, for example if you: \tdo not have a UK bank account \tcannot pay by Direct Debit \thave dual signatories on your account If you want to join the new payment scheme, but cannot use the online service, contact the COVID-19helpline when the scheme opens on Telephone: 0800 024 1222. An adviser will help you join. .