HM Revenue & Customs (HMRC) has started an online payment plan system for businesses that owe less than £20,000 in VAT.
This initiative, which came into effect on 31 May, forms part of HMRC’s broader strategy to digitise tax reporting and payments, aiming to reduce the reliance on contacting HMRC advisers for assistance.
With this new development, businesses across the country can now set up payment plans with ease, without enduring lengthy call queues and offering relief to HMRC advisers.
How do you qualify?
To qualify for an online payment plan, businesses need to meet the following criteria:
- Have filed your most recent tax return
- Owe £20,000 or less in VAT
- Be within 28 days of the payment deadline
- Have no existing payment plans or debts with HMRC
- Pay off the debt within six months
Businesses enrolled in the Cash Accounting Scheme, Annual Accounting Scheme, or making payments on account are ineligible for setting up an online payment plan and must contact HMRC through the regular channels.
To establish an online payment plan, the following information is required:
- Relevant reference number for the tax to be paid (e.g., unique tax reference number)
- Bank account details
- Details of any previous missed payments
If you would like more advice and information on this, do not hesitate to contact us today.
