26 January 2021: HMRC will include extra payments resulting from error corrections for periods covered by the original VAT payments deferral scheme, but only if notified to HMRC’s COVID-19 helpline by 29 January 2021.

HMRC has provided further guidance relating to VAT payments that were deferred between 20 March and 30 June 2020 in advance of launching the VAT deferral new payment scheme.

It has withdrawn the condition that payments must be made by direct debit but stated that the first instalment must be paid at the time of application to the new payment scheme.

If a business has discovered an error in a VAT return where payment was deferred in the period from 20 March and 30 June 2020, it should have followed the normal process for correcting the return, for example by completing form 652 and emailing it to HMRC’s VAT error correction team.

If that error has resulted in an additional VAT liability, it is possible to include the correction in the amounts to be paid under the new payment scheme, but only once HMRC has processed the error correction and if the business contacts HMRC’s COVID-19 helpline by 29 January.