VAT payment plans – how to qualify

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Would your VAT-registered business qualify for a payment plan?

As a start, it would need to owe less than £20,000. Our VAT expert outlines the full qualifications for the ‘Self-serve time to pay for VAT’ service from HMRC below.

Also known as time to pay agreements, the online VAT payment plan is available if a business:

– 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
– plans to pay off its debt within the next six months.

Businesses that use the VAT cash accounting, or annual accounting schemes, and those which make VAT payments on account, will not be able to set up a payment plan online.

For advice on this and other specialist VAT queries, please contact our Senior VAT Manager, Brent Goodwin.