You are here: Home - Household Bills - News -

Thousands set up payment plan to spread the cost of tax bills

0
Written by:
13/01/2021
Nearly 25,000 self-assessment filers have set up payment plans to spread the cost of £69m of tax liabilities.

Taxpayers are able to use instalment arrangements to pay their self-assessment tax bills to spread the cost of up to £30,000.

In October, HMRC increased the threshold as part of the ‘Time to Pay’ arrangements from £10,000 to £30,000 and since then, almost 25,000 people have set up the plans.

The average value of payment plans set up online is £2,821 while a total of £69.1m of tax is being managed under the scheme.

It allows payments to be spread over 12 months but from 1 February, an interest rate of 2.6% will apply.

Karl Khan, HMRC’s interim director general for customer services, said: “We know the past year has been tough for many businesses and self-employed people, which is why we’re helping them spread the cost of their tax bill into monthly payments.

“Self-assessment customers can use the self-serve Time to Pay facility for amounts up to £30,000 with almost 25,000 customers already benefiting from the service.”

Once people have completed their 2019/20 tax return and know how much tax they owe, they can apply for the payment plan via the government website. However, there are eligibility criteria to meet, including:

  • no outstanding tax returns
  • no other tax debts
  • no other HMRC payment plans set up
  • the debt needs to be between £32 and £30,000
  • the payment plan needs to be set up no later than 60 days after the due date of a debt.

The deadline to submit the 2019/20 tax return falls on 31 January 2021.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Privacy Preference Center

Necessary

Advertising

Analytics

Other

Read previous post:
Morrisons pay to break £10 an hour barrier

Supermarket Morrisons says all its employees will be paid at least £10 an hour from April 2021.

Close