HMRC Rolls Out Self-Serve Time-To-Pay For VAT

As of the 31st of May 2023, HMRC has initiated a self-service Time-to-Pay plan for VAT-registered businesses owing less than £20,000 of VAT. These online payment plans allow eligible businesses to manage their VAT payments in a structured manner ...

To qualify for this online self-service payment plan, a VAT-registered business must meet certain prerequisites.

- Firstly, the business should have filed its latest VAT return
- The owed VAT must be less than £20,000
- The company should be within 28 days of the payment deadline
- It must not have any outstanding payment plans or debts with the HMRC
- The business should be aiming to settle its debt within six months

Nevertheless, not all businesses can leverage this online facility. Those employing VAT Cash Accounting or annual accounting schemes are not eligible. Additionally, businesses making VAT payments on account are unable to establish an online payment plan.

Of course, businesses that are ineligible for the self-serve Time-to-Pay service, or require a tailored payment plan, should always speak to their accountant before contacting HMRC directly.

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