HM Revenue and Customs (HMRC) is providing a new service to help make it easier for VAT customers to pay what they owe. Their aim is to allow customers to set up online payment arrangements to reduce the contact needed with HMRC. This should save both time and resources for Debt Management Operations.

HMRC have stated that if customers cannot pay their VAT in full, they may be able to help by setting up a Time to Pay arrangement. This is where a customer pays what they owe in affordable monthly instalments.

From 30 May, customers who meet certain eligibility criteria have been able to set up a Time to Pay for VAT online without needing to call HMRC.

The customer groups affected are:

• Individuals (sole traders)
• directors
• pensioners
• landlords
• tax credit/Universal Credit customers
• digitally-excluded customers
• partnerships
• IR35 Personal Service Companies
• international companies
• assisted digital
• farmers
• haulage companies

To use the service, you need to sign into your online Business Tax Account or Personal Tax Account and pass eligibility checks to set up a self-serve arrangement and complete the online journey. Failure to pass eligibility means the customer will be directed to a telephony route.

The eligibility criteria that have been set are shown below:

• be a VAT customer
• have VAT debt which is less than 28 days old from the payment due date
• have VAT debt which is less than £20k in value
• not have any other debts or TTP payment plans
• be up to date with all tax returns
• be authorised to set up a direct debit mandate

For any business customer wishing to use the service, an application must be made within 28 days of the VAT being due.

If you are unsure about how to use this service, you can contact us for advice by calling 01623 490 120 or email This email address is being protected from spambots. You need JavaScript enabled to view it.