From 31 May 2023, VAT registered businesses can set up a payment plan online if they owe less than £20,000 of VAT.

An eligible VAT registered business can set up a 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 are not eligible to use the online service if:

  • they use VAT cash accounting or annual accounting schemes;
  • they make VAT payments on account

If businesses need to agree a payment plan and they are not eligible to use the self-serve time to pay service, they should contact HMRC.

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