BUSINESS
Pay your Self Assessment tax bill in instalments
HMRC has increased the Self-Serve online monthly payment plan threshold from £10,000 to £30,000.
Self-Assessment customers can apply online for additional support to help spread the cost of their tax bill into monthly payments. From 1 October 2020 this can be done without the need to call HMRC.
HMRC’s online payment plan service can already be used to set up instalment arrangements for paying tax liabilities up to £10,000. Starting from 1 October 2020, the threshold has been increased to £30,000 for Self-Assessment customers.
The increased self-serve Time to Pay limit of £30,000 follows the announcement on 24 September to increase support for businesses and individuals, helping ease any potential financial burden they may be experiencing due to the coronavirus pandemic.
Self-Assessment customers can pay their deferred payment on account bill from July 2020, any outstanding tax owed for 2019 to 2020 and their first payment on account bill for this current tax year in monthly instalments, up to 12 months, via the self-serve tool. Customers who need longer than 12 months to settle their tax liabilities are invited to contact HMRC in the usual way.
Please Note
If you set up a ‘Time to Pay’ arrangement, you will have to pay interest on the tax paid late.
Interest will be applied to any outstanding balance from 1 February 2021.
If you wish to pay your Self Assessment tax bill in instalments, you must meet the following requirements:
- no outstanding tax returns
- no other tax debts
- no other HMRC payments set up
- your Self-Assessment tax bill is between £32 and £30,000
- it is no more than 60 days since the tax was due for payment.
If you do not meet these requirements, you might still qualify for Time to Pay, but you will need to call HMRC to set this up.
