Following our recent story reminding you of the deadline to pay your Self Assessment payments on account by 31 July, we wanted to highlight the payment options which may be available if you need extra time to pay.

For taxpayers with liabilities of up to £30,000, there may be the option to agree a payment plan with HMRC, which will allow you to pay by instalments.  This is called a ‘Time to Pay’ (TTP) arrangement.

For Self Assessment payments, you may be able to set up a payment plan online, without the need for direct contact with an HMRC advisor and this service can be accessed up to 60 days after the payment deadline. 

However to be eligible for TTP:

• You must have filed your latest tax return (with no tax returns outstanding)
• You must owe £30,000 or less
• You must be within 60 days of the payment deadline
• And you must not have any other HMRC payment plans or unpaid tax debts.

For anyone who does not qualify for the TTP option, the first step is to contact HMRC directly to discuss potential alternative payment plans. 

HMRC will generally grant extended payment terms if they believe you will be able to pay the full amount in the future.  However, if HMRC determines that additional time won’t resolve the issue, they may require immediate payment and take enforcement action if the debt remains unpaid.

If you need any help or more information about payments on account and how to pay or you need advice on Self Assessment or any tax issues, please get in touch. 

Internet link: HMRC guidance