Payment Plan (Time to Pay Arrangement) News

Big news for VAT-registered businesses! As of 31 May 2023, HM Revenue and Customs (HMRC) has confirmed that if your business owes less than £20,000 in VAT, you can now establish a payment plan (aka a time to pay arrangement) online rather than needing to call HMRC. Naturally, there are specific criteria to meet. So, we’ve decided to take a quick look to bring you the latest!

Qualifying for the Online Payment Plan

Your VAT-registered business is eligible to set up its VAT payment plan or time to pay arrangements online if:

  • The most recent VAT return has been filed.
  • The VAT owed is £20,000 or less.
  • The business is within 28 days before the payment deadline.
  • The company has no outstanding payment plans or debts with HMRC.
  • You are planning to pay the debt off within the next six months.
 
Who Can Benefit?

The online time to pay arrangements service will be available for many types of businesses, including sole traders, directors, landlords, partnerships, IR35 personal service companies, farmers, haulage companies, and international companies.

 
Exemptions to the Rule

Naturally, there are some exceptions to these new provisions. Some businesses are ineligible to use the online service. This includes firms utilising VAT cash accounting or annual accounting schemes. Similarly, businesses making VAT payments on account cannot set up a payment plan online.

Businesses that are not eligible to use the self-serve time to pay service should directly contact HMRC if they need to agree on a payment plan. This development marks a significant shift in payment methods and will hopefully make the process more streamlined and manageable for many VAT-registered businesses.

 

Expert Guidance for Your Business

Navigating through these financial regulations can often be challenging. That’s where having a professional expert on your side helps. With an extensive understanding of VAT payment plans and time to pay arrangements, our team can help your business understand these new changes and make the most of them. Whether your business is eligible for the new online service or requires a different approach, we’re here to guide you every step of the way, ensuring you’re well-prepared to meet your obligations while also taking advantage of new opportunities to improve your business’s cash flow and financial health. So, please know you don’t have to navigate these complex waters alone. Reach out to our team for expert guidance and support. We’ll be only too happy to help!

 

As always, you can call us on 01243 782 423, or email us from our contact page to see how we can help!

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