UPDATE: A new VAT deferral payment scheme is open up to and including 21 June 2021, allowing businesses to pay deferred VAT in equal instalments, interest free, and choose the number of instalments. Alternatively, businesses can pay deferred VAT in full by 30 June 2021 to avoid being charged penalties or interest.
Businesses who deferred VAT due from 20 March to 30 June 2020 will now have the option to pay in smaller payments over a longer period. Instead of paying the full amount by the end of March 2021, you can make smaller payments up to the end of March 2022, interest free. You will need to opt-in to the scheme, and for those who do, this means that your VAT liabilities due between 20 March and 30 June 2020 do not need to be paid in full until the end of March 2022. Those that can pay their deferred VAT can still do so by 31 March 2021. More information on the scheme will be available on GOV.UK in the coming months.