New online self-service time to pay facility launched

The HM Revenue and Customs (HMRC) has announced the launch of an online self-service “time to pay” facility. This innovative solution is designed to empower VAT registered businesses, enabling them to exercise greater control over their cashflow, particularly when faced with a significant VAT liability that poses challenges to timely payment.

Traditionally, a business encountering difficulties in settling their VAT liabilities could call HMRC, and after passing security questions, could set up a “time to pay” agreement providing they meet the criteria. However this process was very often frustrating as HMRC placed restrictions on the number of repayment months, and their rulings were not consistently applied.

The introduction of the HMRC’s self-service “time to pay” online platform means the process should be much smoother and less stressful for businesses.

To qualify for the online self-service option, businesses must fulfill the certain conditions:

• The latest VAT return has already been filed

• The amount owed to HMRC is £20,000 or less

• Application is made within 28 days of the deadline

• Business doesn’t have another active time to pay agreement or any other debts with HMRC

Under the online process a business can establish a repayment term of up to 6 months, provided they meet the specified conditions. Businesses can set up the agreement by following the link here and logging into their government gateway account. https://www.access.service.gov.uk/login/signin/ creds

If you have any outstanding VAT Returns or a balance over £20,000 HMRC will confirm that you are ineligible upon logging in. Otherwise HMRC will take you through a series of pages and questions before you can agree a payment plan.

The introduction of this online self-service “time to pay” facility aligns with HMRC’s ongoing efforts to simplify and digitise their services, as they strive to enhance communication with taxpayers. However, it is important to note that this shift excludes agents, such as ourselves, from setting up time to pay arrangements on behalf of their clients. Nonetheless, we can continue to offer advice on utilising the facility and remain available to discuss any cashflow forecasts or issues.

If you would like to talk to Forrester Boyd about how we can help with your business finances and accountancy needs, then do get in touch. info@ forrester-boyd.co.uk