As of 8 October 2026, HMRC has published the latest service availability information for VAT payment plans, highlighting current technical issues that may affect businesses attempting to set up time-to-pay arrangements for VAT liabilities. The VAT payment plan service enables VAT-registered businesses to spread payments over an agreed period. The update notes sporadic system errors, slow response times, and occasional failures in direct debit setup. HMRC recommends businesses plan ahead and allow extra time for plan confirmation.
Key Takeaways
- Operational Risk for VAT Returns: Businesses with imminent VAT return deadlines should initiate payment plan requests early to mitigate the risk of missing payment deadlines due to system outages.
- Direct Debit Setup Failures: A known issue prevents some users from completing direct debit mandates online; HMRC advises using the telephone service as a workaround.
- Interest and Penalties: While HMRC acknowledges the technical issues, statutory interest on late VAT payments continues to accrue; businesses should retain evidence of attempted plan setup.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement