- First Choice Accountancy
Monthly payment plans used by Self-Assessment customers to pay £46 million in tax
20,000 customers have been enabled by HMRC's self- serve time to pay facility to spread the cost of their bill whom were struggling to pay their tax return.
More than 20,000 Self Assessment customers have used HM Revenue and Customs online monthly payment plan service since April to spread the cost of their tax bill, totalling £46 million so far.
Where customers are struggling to pay their bill in full, the self-serve Time to Pay service allows self assessment customers to manage how they pay their tax liabilities. Customers can use the online service for tax bills worth up to £30,000 without the need to talk to HMRC. The service will create a bespoke monthly payment plan for the customer based on how much tax is owed and the length of time needed to pay.
Last year, 123,000 customers used the self-serve Time to Pay to spread the cost of their 2019 to 2020 tax bill, worth £460 million.
Customers have until 31 January 2022 to complete their tax return for the 2020-2021 financial year and pay their bill. If they can't pay in full, customers can set up their own Time To Pay arrangement online if they:
have filed their tax return for the 2020 to 2021 financial year
owe less than £30,000
are within 60 days of the payment deadline
plan to pay their debt off within the next 12 months of less
If customers owe more than £30,000 , or need longer to pay, they should call the Self Assessment payment helpline on 0300 200 3822.
Self- serve Time to Pay is just one way customers can pay their self assessment tax bill, a full list of alternative payment methods is available on GOV.UK.
GOV.UK, 2021. Self Assessment customers use monthly payment plans to pay £46 million in tax. London: HM Revenue & Customs, p.1.