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  • Shepherd Partnership

VAT 'Time to Pay' arrangements

A welcome change with VAT debts is that some businesses which owe less than £20,000 in VAT can now set up a time to pay arrangement online.

There are criteria you need to meet to be able to set up a payment plan:

  • You must have filed yours latest VAT return

  • You must owe £20,000 or less

  • It is within 28 days of the payment deadline

  • You do not have any other payment plans or debts with HMRC

  • You plan to pay off your debt within the next six months

However, many business will not be eligible to use the online service as those using the VAT cash accounting or annual accounting schemes or those making VAT payments on account cannot set up a payment plan online.

For businesses not eligible to use the online time to pay service can still get in touch with HMRC if they need to agree a payment plan.

Further information if you are struggling to pay tax can be found on

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