HMRC has launched a new VAT time-to-pay portal allowing businesses to set up payment plans online.
As of 31 May 2023, businesses owing £20,000 or less in unpaid VAT can make payment arrangements through the portal if they meet the eligibility criteria.
To qualify, VAT-registered businesses must:
- have filed their latest VAT return
- access the portal within 28 days of the payment deadline
- agree to pay off the debt within six months
- have no outstanding debts or payment plans with HMRC.
Businesses using the VAT cash accounting or annual accounting scheme won’t be eligible to use the service.
Customers can access the time-to-pay portal through their Government Gateway account. HMRC will redirect ineligible businesses to make an arrangement via another method.
The service is available for a wide range of businesses and individuals, including:
- sole traders
- company directors
- landlords
- pensioners
- partnerships
- international companies.
HMRC hopes that this measure will reduce the administrative burden for its tax advisers. In an impact assessment, the tax authority said:
“Providing customers the ability to set up online payment arrangements will reduce the contact needed with HMRC, saving on both time and resources for debt management operations”.
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