With tax payment deadlines fast approaching – 31 July for Self Assessment claims and 7 July & 7 August for May and June’s respective VAT payments – some businesses may find themselves unable to pay their outstanding VAT bill in full.
To help simplify the process of arranging a payment plan, HMRC has introduced a new VAT payment plan online, similar to the Self Assessment payment plan online, for eligible VAT registered businesses.
To be eligible for the online payment plan, you must:
- have filed your most recent VAT return on time
- owe no more than £20,000 of VAT
- have set up the arrangement within 28 days of the payment deadline
- not have any other payment plans with HMRC
- not have any other debts with HMRC
- plan to pay off the VAT debt within six months
You cannot set up a VAT payment plan online if you’re in the Cash Accounting Scheme, Annual Accounting Scheme, or you make payments on account, and you’ll need to contact HMRC directly to agree a payment plan.
If you need any advice in relation to your VAT payments, please contact our VAT Tax Experts by calling one of our offices or emailing taxation@eqaccountants.co.uk.