For VAT-registered businesses, there’s a new convenient option to pay. Following the lead of the Self Assessment’s Time to Pay online system, businesses now have a similar feature to handle their VAT bills. Here’s a quick overview:

How to Set Up Your VAT Payment Plan Online:

Overview: VAT-registered businesses facing challenges with immediate VAT payments can now potentially distribute these payments over several months using the online feature.

Eligibility for the Online Tool:

  • Your latest VAT return is already filed.
  • The owed amount is £20,000 or less.
  • The payment deadline is still 28 days away.
  • No other debts or payment plans exist with HMRC.
  • Commitment to clear the amount within six months.

Do note, the online tool is not available for those on the VAT cash accounting scheme, the VAT annual accounting scheme, or those making VAT payments on account.

Setting Up Direct Debit: To facilitate payments, you’ll need to set up a direct debit via your Government Gateway account. While you can consult with advisors on the process, the setup has to be done personally.

If the Online Method Isn’t for You:

For those ineligible for the online service but still in need of managing their VAT payments, there’s always the traditional route. Contact HMRC directly at 0300 200 3831 to discuss possible instalment plans.

This new feature aims to streamline VAT payment processes and offer flexibility to businesses. It’s always essential to stay informed and choose the best payment method that suits your business needs.

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Any questions?

If you’d like a meeting or a video call to discuss this, please get in touch with your favourite Liverpool accountant