Self Assessment Monthly Payment Options

As announced by the Chancellor last week, Self Assessment customers can now apply online to spread the cost of their tax bill into monthly payments without the need to call HMRC.

The online self-serve 'Time to Pay' service, has been increased from £10,000 to £30,000 for Self Assessment customers, to help ease any potential financial burden they may be experiencing due to the coronavirus pandemic.

Once you've completed your tax return for the 2019-20 tax year, you can use the online self-serve 'Time to Pay' service through GOV.UK to set up a direct debit and pay any tax that is owed in monthly instalments, up to a 12-month period.

If you wish to set up your own self-serve 'Time to Pay', you must meet the following requirements:

• no outstanding tax returns
• no other tax debts
• no other HMRC payments set up
• your Self Assessment tax bill is between £32 and £30,000
• it is no more than 60 days since the tax was due for payment

If you do not meet these requirements, you might still qualify for Time to Pay, but you will need to call HMRC to set this up. If you set up a 'Time to Pay' arrangement, you will have to pay interest on the tax paid late.

Please note, if you do choose to spread the cost of your tax payments, interest will be applied to any outstanding balance from 1 February 2021.

To setup a payment plan online head to HMRC by clicking here

If you have any questions or we can help you with any COVID-19 business support please get in touch. Email the team hello@thebusinesshut.co.uk or call 01858 289 189.

Head to our Personal Tax Compliance page to find out more about how the team can help you.

Thanks for stopping by,

Charlotte & The Business Hut Team

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