October 1st, 2020.


Self-Assessment tax payers can apply online for additional support to help spread the cost of their tax bill into monthly payments.

From the 1st of October, the online payment plan service can be used to set up instalment arrangements for paying tax liabilities up to £30,000.

The increased self-serve Time to Pay limit of £30,000 follows the Chancellor of the Exchequer’s announcement on the 24th of September to increase support for businesses and individuals through the uncertain months ahead.

As part of his speech, the Chancellor announced that Self-Assessment customers could pay their deferred payment on account bill from July 2020, any outstanding tax owed for 2019 to 2020 and their first payment on account bill for this current tax year in monthly instalments, up to 12 months, via this self-serve tool. Customers who need longer than 12 months to settle their tax liabilities are invited to contact HMRC in the usual way.

Financial Secretary to the Treasury, Jesse Norman, said; “We are supporting jobs by giving more breathing space to up to 11 million self-assessment taxpayers when managing their tax affairs. Enhancing Time to Pay should ease the financial burdens and protect the livelihoods of these taxpayers, as they navigate the months ahead.”

HMRC estimates that around 95 per cemt of Self-Assessment customers, who are due to make payments on the 31st of January 2021, could qualify to implement a Time to Pay arrangement using the self-serve Time to Pay facility online, without needing to speak to an HMRC adviser.

Visit www.gov.uk for more information.