As of 31 May 2023, VAT-registered businesses that owe less than £20,000 of VAT can set up a Time to Pay Arrangement online as long as they agree to pay off the VAT within six months.

The service is not available to businesses that use the VAT cash accounting or annual accounting schemes or those that make VAT payments on account.

You must:

• Have filed your latest VAT return;
• owe £20,000 or less;
• not have any other payment plans or debts with HMRC; and
• plan to pay off the debt within six months.

The service will be available for sole traders, directors, landlords, partnerships, IR35 personal service companies, farmers and haulage companies, as well as international companies.