Did you know that some businesses or self-employed people may be eligible to receive support with when and how they pay their tax through HMRC’s Time To Pay service.
An online payment plan for Self-Assessment tax bills can be used to set up instalment arrangements for paying tax liabilities up to £30,000. Taxpayers that qualify for a Time to Pay arrangement using the self-serve Time to Pay facility online, can do so without speaking to an HMRC adviser. The service will create a bespoke monthly payment plan based on how much tax is owed and the length of time needed to pay.
The Time To Pay service was used by over 123,000 taxpayers for the 2019-20 tax year to spread the cost of over £460m in tax.
Taxpayers that want to use the online option for their 2020-21 tax return must meet the following requirements:
- have filed their tax return for the 2020-21 tax year
- owe less than £30,000
- be within 60 days of the payment deadline of 31 January 2022
- plan to pay their debt off within the next 12 months or less
Taxpayers with Self-Assessment tax payments that do not meet the above requirements need to contact HMRC to request a Time To Pay arrangement.
HMRC will usually offer taxpayers the option of extra time to pay if they think they genuinely cannot pay in full but will be able to pay in the near future. If HMRC do not think that more time will help, then they can require immediate payment of a tax bill and start enforcement action if payment is not forthcoming.
If you would like more information about HMRC’s Time To Pay service or help with your tax return, please get in touch.