In addition to self- serve time to pay arrangements for self-assessment, HMRC has now launched self-serve time for VAT registered business subject to certain conditions.
These conditions are as below:
The business must:
- Be VAT registered;
- Owe £20,000 or less;
- Have filed its latest VAT return;
- Have no outstanding debts with HMRC;
- Not have any other current payment plan with HMRC;
- Be able to pay off any debt within the next six months.
VAT registered businesses that are not eligible to take advantage of the self serve time to pay for VAT are those that:
- Use VAT cash accounting;
- Use annual accounting schemes;
- Make VAT payments on account.
The self serve time to pay for VAT was launched on 31st May 2023 and is available online.
How to set up a payment arrangement for VAT
To access the service business owners need to log in to their Government Gateway account where they can set up a self-serve arrangement. Eligibility checks will need to be passed before being able to set up the payment arrangement.
Deadline for setting up self-serve time to pay arrangement for VAT
For any business customer wishing to use the service, an application must be made within 28 days of the VAT being due.
What if you fail the eligibility checks
For anyone who fails the eligibility checks, or is not able to use the payment service, they should contact HMRC direct to discuss if there is any option for them to set up a ‘time to pay’ payment plan. If you find you cannot pay any tax owing on time, it is imperative to call HMRC immediately to discuss your situation and try to avoid any late penalty charges.
For more help with your VAT returns or for an informal chat about what Maynard Johns can do to help, get in touch on 01237 472071.