Deferral is automatic, although you can pay as normal if you wish. There is no need to tell HMRC that you are deferring a VAT payment.
If you pay VAT by direct debit you will need to cancel the direct debit immediately, otherwise HMRC will automatically make the withdrawal from your bank. Check before reinstating the direct debit because the deferral period could potentially be extended.
Payment on account
If you’re due to pay a self-assessment payment on account by 31 July 2020 but you are going to have difficulty in making the payment because of the impact of Covid-19, then you can defer the payment until 31 January 2021; this doesn’t just apply to the self-employed. As for VAT, deferral is automatic, with no interest or penalties.
If you are going to have difficulty making the payment due on 31 January 2021, you might be able to set up a payment plan with HMRC.
Before deferring the payment, remember that the deferred amount will become due at the same time as your balancing payment for 2019/20 and the first payment on account for 2020/21. So as not to find yourself with a large bill at that time, consider making advance payments against this bill if you possibly can.
You can find out more about the government’s COVID-19 measures to support businesses here.
For more information relating to COVID-19, please view our COVID-19. Information Quick Find page