Time to Pay means paying tax by regular monthly payments in return for avoiding any further late payment penalties. Online payment plans can be set up for tax bills up to £30,000, without the need to contact HMRC directly.
According to HMRC, more than 15,000 self-assessment taxpayers have already set up a Time to Pay payment plan for the 2023/24 tax year.
The online deadline to file a tax return for the 2023/24 tax year and pay any tax owed is 31 January 2025. Anyone who is unable to pay their tax bill in full, owes less than £30,000 and is eligible can apply for Time to Pay online without the need to contact HMRC directly. Those that owe more than £30,000 are still able to apply but would need to contact HMRC.
Myrtle Lloyd, HMRC’s director general for customer services, said: “We’re here to help taxpayers get their tax right, and if you are worried about how to pay your self-assessment bill, help and support is available.
“Taxpayers can set up their online payment plan to suit their own financial circumstances and can spread those payments across a maximum of 12 months. It is a valuable option for someone needing extra flexibility in meeting their tax obligations.”
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Taxpayers must file their self-assessment tax return before setting up a Time to Pay arrangement.
Other ways to pay your tax bill
There are many ways in which people can pay their self-assessment tax bill. These include:
- Using the HMRC app
- Online at Gov.uk
- By phone
- Through your online bank account
- At your bank or building society
HMRC is encouraging people to be prepared and have all the information they need ready to file their self-assessment tax returns early, so they can avoid any last-minute stress and know what they owe sooner.
Taxpayers setting up a Time to Pay arrangement need to budget accordingly to ensure that regular monthly payments can be made. Any missed payment will incur interest as well as a penalty.
Simple assessment
HMRC is also reminding anyone who received a ‘simple assessment’ letter that the deadline to pay any tax owed is 31 January 2025. Simple assessment taxpayers do not need to register and complete a tax return.
Simple assessment letters were issued to those who have unpaid income tax from the 2023/24 tax year that cannot be collected via Pay as You Earn (PAYE) – by an employer or pension provider.
Taxpayers who receive a simple assessment on or after 31 October 2024 for tax owed during the 2023/24 tax year will have three months from the date of their assessment to pay their tax bill.
Both self-assessment and simple assessment payments can be made in full, or in smaller amounts if the balance is cleared before the deadline. Payments can be made on Gov.uk or through the HMRC app.
