Certain businesses can now set up a VAT payment plan online.

As of 31 May 2023, VAT-registered businesses that owe less than £20,000 of VAT can set up a payment plan online. Payment plans are sometimes known as time to pay agreements.

A VAT-registered business can set up its VAT payment plan online if it:

  • has filed its latest VAT return;
  • owes £20,000 or less;
  • is within 28 days of the payment deadline;
  • does not have any other payment plans or debts with HMRC; and
  • plans to pay off its debt within the next six months.

Some businesses are not eligible to use the online service. This includes businesses that use the VAT cash accounting or annual accounting schemes. Businesses that make VAT payments on account also cannot set up a payment plan online.

Businesses not eligible to use the self-serve time to pay service should contact HMRC if they need to agree a payment plan. 

Further reading:

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