SPREAD THE COST OF YOUR TAX BILL

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More self-assessment taxpayers can now apply online to spread the cost of their tax bill into monthly payments.

And there’s no need to call HM Revenue and Customs (HMRC) to take advantage.

An online payment plan service was already in place to set up instalment arrangements for paying tax liabilities up to £10,000. 

And now, from 1 October, HMRC has increased the threshold to £30,000 to help ease financial burden due to the coronavirus pandemic.

The Chancellor announced (on 24 September) that self-assessment taxpayers could make deferred payments from July 2020, any outstanding tax owed for 2019/20 and their first payment on account for this current tax year in monthly instalments, up to 12 months, via the same self-serve tool. 

Customers who need longer than 12 months to settle their tax liabilities must contact HMRC in the usual way.

More than 11 million people complete a self-assessment tax return each year. 

Those with payments to make may have the option of using the online self-serve Time to Pay facility through GOV.UK to set up a direct debit. They can then pay any tax in monthly instalments, up to a 12-month period.

HMRC estimates around 95% of self-assessment customers due to make payments on 31 January 2021 could qualify to implement a Time to Pay arrangement using the self-serve facility online, without needing to speak to HMRC.

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