Time to Pay for self-assessment taxpayers

 The Government has announced an enhanced Time to Pay scheme for those affected by the Coronavirus pandemic who may, as a result, struggle to meet their tax payments. 


Once a tax return has been completed for the 2019/20 tax year, those who have payments to make could have the option of using the online self-serve Time to Pay facility to set up a direct debit and pay any tax that is owed in monthly instalments - up to a 12-month period.


HMRC estimate that about 95% of Self-Assessment customers who are due to make payments on 31 January 2021 could qualify to implement a Time to Pay arrangement using the self-serve Time to Pay facility online, without needing to speak to an HMRC adviser.


Anyone opting to set up a Time to Pay arrangement will be required to pay interest on the tax owed. Interest will be applied to any outstanding balance from 1 February 2021.


Those wishing to set up their own self-serve Time to Pay arrangements must meet the following requirements. They will need to have no;

  • Outstanding tax returns;
  • Other tax debts; or,
  • Other HMRC payment plans set up.


The debt needs to be between £32 and £30,000 and the payment plan needs to be set up no later than 60 days after the due date of a debt.


Those with self-assessment tax payments over £30,000, or who need longer than 12 months to pay in full, may still be able to set up a time to pay arrangement by calling the self-assessment payment helpline on 0300 200 3822.


For more information go to: https://www.gov.uk/government/news/self-assessment-customers-to-benefit-from-enhanced-payment-plans



Blog post uploaded 14 Dec 2020