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 ...
You should always speak to your accountant before contacting HMRC directly.!
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
Is 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.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about HMRC and the Time-to-Pay for VAT, it may be a great idea to call me on 01908 774320 and let's see how I can help.
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Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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