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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