A quarterly VAT bill can be a significant single outlay for a small business. Credicorp Slice allows you to spread eligible HMRC and VAT-related bills across three or four weekly instalments at a flat 6% fee — with Slice paying your bill directly rather than you receiving the funds.
Is a VAT bill eligible for Slice?
VAT bills are among the most common use cases for Slice. To qualify:
- The bill must be a genuine, identifiable business obligation — an HMRC VAT assessment, a quarterly VAT return due payment, or a VAT-inclusive invoice from a supplier.
- You must be able to provide the bill reference number and the payee's bank details (HMRC's account details are publicly available).
- The amount must fall within your approved Slice limit.
Slice pays the bill directly to the recipient — in this case, HMRC — on the day the Slice is set up. You repay Slice in instalments.
Step-by-step: using Slice for a VAT bill
- Gather the bill details. You need the HMRC payment reference from your VAT return confirmation, the HMRC bank account sort code and account number (these are on the HMRC "pay your VAT" page at gov.uk), and the exact amount due.
- Apply for Slice. Sign in to the portal, select Credicorp Slice, and enter the bill details. The application asks for the payee name, sort code, account number, and your payment reference.
- Review the instalment schedule and fee. Slice will show you the repayment schedule — three or four equal weekly instalments — and the total flat 6% fee. Review and confirm.
- Slice pays HMRC. Once you confirm, Slice transfers the full VAT amount directly to HMRC using the reference you provided. HMRC typically credits the payment within one business day of receipt.
- Repay Slice in instalments. Your weekly instalment is collected automatically by direct debit. Keep your bank account funded on each collection date.
VAT payments have a statutory deadline. Ensure you apply for Slice early enough that payment reaches HMRC before your due date. Allow an extra day or two for bank processing. HMRC charges a surcharge or interest on late payments — these are your responsibility, not Credicorp's.
What happens if the instalment is missed
A missed Slice instalment accrues interest on the outstanding amount. If you anticipate difficulty making an instalment payment, contact us in advance — see what happens if a Slice instalment is missed.
See also: What is Credicorp Slice?, Credicorp Slice for VAT and tax bill spreading, Which suppliers and bills qualify for Slice?.