The Online VAT Payment Plan
July 26, 2023

The Online VAT Payment Plan

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