HMRC launches online application for time to pay arrangements
HMRC has launched an online application process for VAT time to pay arrangements. Is this option available for your business?
Due to the new service, eligible businesses no longer need to call HMRC and plead for, or justify, an extension to their VAT payment deadline. However, it is necessary to take action swiftly, if you are struggling to pay. A business can set up its VAT payment plan online if:
- the latest VAT return has been filed
- less than £20,000 is outstanding
- the request is made within 28 days of the payment deadline
- it does not have any other payment plans or debts with HMRC; and
- it plans to pay off its debt within six months.
Ineligible businesses can still contact HMRC to agree a payment plan, but will likely need to justify the need to do so. Note that late payment interest will still be charged, and, as interest rates are increasing, paying sooner rather than later is recommended wherever possible.
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