Time to pay arrangements for individuals who cannot pay their self-assessment tax bill

HMRC can agree time to pay arrangements with those individuals who cannot pay their self-assessment tax bill on time.

A time to pay arrangement can be set up using HMRC’s online service, providing the following criteria is met:

  • Owe £30,000 or less
  • Tax returns are up to date
  • There are no other payment plans or debts with HMRC
  • Are within 60 days of the payment deadline

Individuals can choose how much to pay straight away and how much they want to pay in monthly instalments. Interest will be charged on these payments.

If repayments are not paid, HMRC can ask individuals to repay the entire amount they owe.

HMRC has stated that if a payment plan extends into and beyond July 2021, the amount of the July Self-Assessment Payment on Account will be considered when calculating the £30,000 threshold. HMRC are reportedly looking to update their guidance to make this clear.

If an individual exceeds the £30,000 threshold, the online service cannot be used. However, it may be possible to agree a time to pay arrangement by contacting HMRC’s Self-Assessment Payment Helpline on 0300 200 3822.

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Emily Dodds

Emily Dodds

Marketing and Business Development Officer

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