Self-Assessment – Extended Payment Options

In response to the worsening Covid-19 situation, the Chancellor of the Exchequer Rishi Sunak has recently announced enhanced payment plans for those within Self-Assessment.

An online self-serve Time to Pay service has been set up by HMRC where those experiencing financial burden due to the Coronavirus pandemic can set up a direct debit and pay any tax that they owed via monthly instalments, over a maximum of 12 months. The amounts which can be included are:

• The second payment on account for the 2019/20 tax year which was originally due on 31 July 2020 but was deferred

• Any balancing payment due on 31 January 2021 in respect of the 2019/20 tax year

• The first payment on account due on 31 January 2021 for the 2020/21 tax year

If you chose to use a Time to Pay arrangement, late payment interest will be incurred on the outstanding tax from 1 February 2021.

Should you wish to set up an arrangement, your 2019-20 Self-Assessment tax return needs to have been submitted to HMRC and you will need to meet the following to be eligible for a Time to Pay arrangement:

• you owe £30,000 or less;

• you do not have any other payment plans or debts with HMRC;

• your tax returns are up to date; and

• it is less than 60 days after the payment deadline.

If you do not meet the above criteria, or you want to pay your tax over more than 12 months, you may still be eligible for a Time to Pay arrangement but will need to contact HMRC Self-Assessment Payment Helpline (0300 200 3822) to discuss the options.

Where all of the criteria are met a Time to Pay arrangement can be set up using the link below - you will need to have a Government Gateway account set up to access this service.

Here to help

If you would like any further information, please do not hesitate to contact one of the team.