More than 20,000 Self Assessment customers have used HM Revenue and Customs (HMRC) online monthly payment plan service since April to spread the cost of their tax bill, totalling £46 million so far, it has been revealed.
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 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 to 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 or 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.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said:
We understand some customers might be worrying about paying their Self Assessment bill this year, and we want to support them. To see if you’re eligible to set up a payment plan, go to GOV.UK and search ‘pay my Self Assessment’.
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.
HMRC urges everyone to be alert if they are contacted out of the blue by someone asking for money or personal information. Customers should always type in the full online address (www.gov.uk/hmrc) to get the correct link for filing their Self Assessment return online securely and free of charge. HMRC sees high numbers of fraudsters emailing, calling or texting people claiming to be from the department. If in doubt, HMRC advises not to reply directly to anything suspicious, but to contact them straight away and to search GOV.UK for ‘HMRC scams’.
Latest self-serve Time to Pay figures are for arrangements set up in the 2020 to 2021 financial year and are up to 28 November 2021.
Figures for the 2019 to 2020 financial year are from 1 October 2020 to 31 March 2021.
Find out more about how to declare taxable COVID-19 support in your tax return if you are self-employed, in a partnership or run a business.
If this is your first time completing an online tax return, you may be asked additional questions to prove your identity. To answer these questions, please have as many of the following to hand where relevant, when making your claim:
- your UK passport
- Northern Ireland (DVA – issued) driving licence
- information held on your credit file (such as loans, credit cards or mortgages)
- your Self Assessment tax return (within the last 3 years)
- your tax credit claim
- your P60
- one of your 3 most recent payslips