Businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time to Pay service. Any tax, duty, penalties or surcharges that you cannot afford to pay can be included.

An online payment plan for self-assessment tax bills can be used to set up instalment arrangements for paying tax liabilities up to £30,000. Taxpayers that qualify for a Time to Pay arrangement using the self-serve Time to Pay facility online, can do so without speaking to an HMRC adviser. This service is available within 60 days of the payment deadline.

Taxpayers that want to use the online option must also meet the following requirements:

  • Have no outstanding tax returns
  • No other tax debts
  • No other HMRC payment plans set up

Other payments arrangements are usually agreed on a case-by-case basis and are tailored to individual circumstances and liabilities. Agreements reached with HMRC allow businesses and individuals to pay off their debt by instalments over a period of time.

HMRC will usually offer taxpayers the option of extra time to pay if they think they genuinely cannot pay in full now but will be able to pay in the future. If HMRC do not think that more time will help, then they can require immediate payment of a tax bill and start enforcement action if payment is not forthcoming.

Source: HM Revenue & Customs Tue, 30 Jan 2024 00:00:00 +0100

HMRC has launched new emergency measures to help those businesses and self-employed people affected by COVID-19 through the Time to Pay service. These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities. The new dedicated COVID-19 helpline opened on 11 March 2020 and offers advice and support.

If you are unable to pay some or all the tax you owe due to the outbreak you need to be pro-active and contact the Time to Pay service as soon as possible. Avoiding the issue and hoping the problem will go away will only make things worse.

The dedicate helpline can be contacted on 0800 0159 559. HMRC is also making some 2,000 experienced call handlers available to support firms and individuals when needed.

If you have missed a tax payment and have received a payment demand, like a tax bill or a letter threatening you with legal action, then you should take immediate action. We would of course be happy to assist you in your dealings with HMRC and in agreeing the most favourable outcome.

Source: HM Revenue & Customs Wed, 18 Mar 2020 05:00:00 +0100