Last week, the Chancellor announced that Self Assessment taxpayers can now apply online to spread the cost of their tax bill into monthly payments without the need to call HMRC.
Last week, the Chancellor shared an update about Self Assessment tax bill payment. Previously, Self Assessment taxpayers have had to call HMRC to apply to spread the cost of their tax bill into monthly payments.
This can now be done online!
The online 'Time to Pay' service limit has been increased to £30,000. This is intended to help ease any potential financial difficulties due to coronavirus.
How to take advantage of the online 'Time to Pay' service
Complete your 2019/20 Self Assessment tax return
Use the online 'Time to Pay' service via GOV.UK
Set up a direct debit and pay any tax owed in monthly instalments, up to a 12-month period
Who is eligible?
If you would like to use this service, you will need to 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 any tax paid late. Interest will be applied to any outstanding balance from 1 February 2021.
If you would like support with your tax return, please get in touch with us!