Scheme may ease the pain when cashflow is tight.
Sole traders and the self-employed who complete Self Assessment tax returns may be able to spread the cost of their tax bills.
The deadline to file and pay any tax owed is 31 January.
However, HM Revenue & Customs (HMRC) says anyone unable to pay in full by then can ask to set up a Time to Pay arrangement online and opt for monthly instalments.
Better still, for those with bills of up to £30,000, this can be done without needing to contact HMRC directly.
Since 6 April 2025, nearly 18,000 payment plans have been created under the service, helping customers avoid late payment penalties, says HMRC.
A Time to Pay arrangement can’t be made until a Self Assessment return has been filed.
If the tax owed is more than £30,000, or a longer repayment period is needed, people can still apply but need to contact HMRC directly.
“If you are worried about paying your Self Assessment bill, assistance is available,” says HMRC chief customer officer Myrtle Lloyd.
“Our online payment plans offer financial flexibility and can be tailored to individual circumstances.”
