Self-serve payment plan for VAT

Eligible businesses can now set up a VAT payment plan online.

As of 31 May 2023, VAT-registered businesses that owe less than £20,000 of VAT can set up a payment plan online. Payment plans are sometimes known as ‘time to pay’ agreements.

A VAT-registered business can set up its VAT payment plan online if it:

• has filed its latest VAT return;
• owes £20,000 or less;
• is within 28 days of the payment deadline;
• does not have any other payment plans or debts with HMRC; and
• plans to pay off its debt within the next six months.

Businesses that are not eligible to use the online service include those that use the VAT cash accounting or annual accounting schemes and those that make VAT payments on account.

If your businesses is not eligible to use the self-serve time to pay service please contact HMRC if you need to agree a payment plan.

About the Author

Paul Newbold

Partner

After qualifying with KPMG where he gained significant audit experience, Paul joined Torgersens in 1991 and became the firm’s audit partner in 2000. Paul employs his broad range of financial skills to provide commercial and accounting advice to a range of owner-managed businesses in the independent retail, education and professional services sectors. He also has extensive experience dealing with charities, Registered Social Landlords and not-for-profit organisations and co-operatives.   Outside of work, Paul likes to visit Eastern France and South-West German and read novels by David Morrell, Michael Blake and Harper Lee. He also likes watching films, his favourite is The Shawshank Redemption.

To get in touch please e-mail paul.newbold@torgersens.com.