You can either pay in full on or before 31 March 2021 or opt in to the VAT deferral new payment scheme when it launches, to allow payment by smaller monthly instalments, interest free. All instalments must be paid by the end of March 2022.
To use the scheme, you must be up to date with your VAT returns and have outstanding deferred VAT.
Please note that you must opt in before 31 March 2021 and pay the first instalment at the time you do opt in.
If you are going to need longer a longer payment plan you will need to contact HMRC Payment Support Service on 0300 200 3835.
Guidance has been added to tell taxpayers what to do if they find an error on a return covered by the VAT deferral scheme.