More time to pay tax due on 31 January 2020

The individuals who are unable to pay the tax due under self-assessment on 31^st January 2021 can agree and set up a payment plan provided the following conditions are met:

• Tax due is less than £30,000
• You do not have any other payment plans or debt with HMRC
• Your tax returns are up to date
• It’s less than 60 days after the payment deadline

The government have already agreed that the amounts due under self-assessment from July 2020, any outstanding tax owed for 2019/20 and first payment on account bill for tax 2020/21 in monthly instalments, up to 12 months.

You can either set up a payment plan online by logging into your HMRC online personal tax account or call the HMRC Payment Support service.

Important things to know

Tax return has to be prepared and filed early so that tax bill owed to HMRC at 31^st January 2021 can be determined

It takes at least 48 hours after the tax return has been filed before you can set up Time to Pay arrangement online.

Interest is payable on Time to Pay instalments

If Time to Pay instalments are agreed before they become due and the tax owed under the arrangement are paid on time the late payment penalties can be avoided.

For further details and help, please contact us