Elderly businessman takes time to pay VAT bill

As a VAT-registered business, managing your tax obligations efficiently is crucial. It’s not always easy to pay your VAT bill in full and on time, especially if you are facing financial constraints. However, there’s good news for taxpayers like you! The HMRC has introduced a self-serve Time to Pay arrangement specifically for VAT-registered businesses.

In this blog post, we will explore the benefits and eligibility criteria for this convenient online service.

What is Self-Serve Time to Pay for VAT?

The self-serve Time to Pay arrangement allows VAT-registered businesses to set up a payment plan online, ensuring that you can pay your VAT bill in manageable instalments. This eliminates the need to contact HMRC directly, saving you time and effort. The payments are conveniently collected via direct debit, simplifying the process even further.

Eligibility and Conditions for Self-Serve

To take advantage of the self-serve facility, you must meet the following criteria:

  1. You have filed your most recent VAT return.
  2. The amount you owe is £20,000 or less.
  3. You are within 28 days of the payment deadline.
  4. You don’t have any other outstanding payment plans or debts with HMRC.
  5. Your intention is to settle your VAT bill within a period of six months.

It’s important to note that the online self-serve facility is not available if you use the VAT cash accounting scheme, the VAT annual accounting scheme, or if you make VAT payments on account.

How to Set Up a Payment Plan Online

Setting up a payment plan through self-serve is straightforward. You need to sign into your Government Gateway account and follow the step-by-step instructions. As part of the process, you will need to set up a direct debit to ensure seamless collection of your payments. Please remember that while advisers can provide guidance, setting up the direct debit is a task that solely rests on your shoulders.

Alternative Solutions

If you are ineligible for the self-serve option or encounter any difficulties during the process, don’t worry; there are still options available. You can reach out to HMRC via the VAT payment service helpline at 0300 200 3831 to explore alternative arrangements for your VAT payments or sign in to your VAT online account to find more information on the criteria for self-serve Time to Pay.

Managing VAT payments effectively is a priority for any VAT-registered business. With the introduction of the self-serve Time to Pay arrangement, paying your VAT bill has become more convenient and hassle-free than ever before. By meeting the eligibility criteria and utilizing the online self-serve facility, you can easily set up a payment plan that suits your financial situation. Say goodbye to stress and embrace a smoother VAT payment experience.

At KA Farr, we understand the importance of seamless financial management for businesses. If you have any further questions or require assistance with VAT-related matters, our expert team is here to help. Contact us today to ensure smooth and efficient VAT compliance for your business.