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HMRC Online VAT Payment Plan

Do you meet the criteria?

As of 31st May 2023, VAT-registered businesses can now set up a payment plan online, providing they meet the following criteria:

  • They owe £20,000 or less

  • They plan to pay off their debt within 6 months

  • They do not have any other payment plans with HMRC

  • They have filed their latest return

  • They are within 28 days of the payment deadline

Who won't meet the criteria?

The following businesses will not be eligible to use this service:

  • Businesses using the cash accounting method

  • Businesses using the annual accounting scheme

  • Businesses that make VAT payments on account

You will still need to contact HMRC if you wish to set up a payment plan

The pitfalls

The 28-day payment deadline window is fairly tight. Businesses will have to be on the ball to benefit, and fairly certain that they need to use this service.

However, if you do qualify for the service, you'll need:

  • Your VAT registration number

  • Your bank details

  • Details of the payment that you need to delay

You can find full details HERE



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