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VAT - Cancelled Direct Debits

Covid-19 Deferred VAT Scheme

The deferral of VAT payments under the government’s COVID-19 support package ends on 30 June 2020.

Businesses that have cancelled their VAT Direct Debit, must reinstate it in time for their first post 30 June VAT payment date, or pay using BACS or another direct payment method.


Paying your VAT bill directly

As the 7th July is tomorrow, there is not enough time to reinstate the Direct Debit for the 31st May 2020 quarter end – if this applies to your business, you will need to pay your VAT bill directly.

The bank details for direct payment to HMRC can be found here

You must quote your 9-digit VAT registration number as the reference on the payment.


Reinstating your VAT Direct Debit

You can reinstate by accessing your VAT Online Account

Unfortunately your accountant cannot do this for you, it has to be through your own Government Gateway account.

If you require help or assistance with this process, please call.


What about the already deferred VAT from the previous quarter?

HMRC have confirmed that their systems have been updated, so that once the VAT direct debit is reinstated, any deferred VAT, will not automatically be collected from those in Making VAT Digital.

Any VAT that has been deferred under this scheme, must be paid on or before 31st March 2021. You can make a payment towards deferred VAT now, or at anytime up to 31st March 2021. It is not yet clear if any remaining deferred VAT outstanding at 31st March 2021 will be automatically collected by Direct Debit.



Please feel free to share this information as widely as possible and encourage people, who might benefit from these updates, to register at for future updates.


This information is provided free of charge and in good faith, without acceptance of any future liability arising from any action or in-action by any recipient or reader.


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