Following the Chancellor’s, Rishi Sunak, Winter Economy Plan announcement, HM Revenue & Customs (HMRC) have unveiled their online payment support service, with the aim to help up to 11 million Self-Assessment taxpayers spread the cost of their tax payments.
Self-Assessment taxpayers with tax bills up to £30,000, falling due in January 2021, are able to benefit from a payment extension through HMRC’s online self-service ‘Time to Pay’ facility allowing them to secure a plan to pay over an additional 12 months.
For taxpayers using the service, this means that tax payments deferred from July 2020, and those due in January 2021, will now not need to be paid in full until January 2022.
The payment plan is available to taxpayers who owe less than £30,000, provided their tax records are up to date and they do not have any other payment plans, or debts, in place with HMRC.
The online self-service is now live for taxpayers who have filed their 2019/20 tax return and can be accessed via their HMRC ACCOUNT without the need to speak to an HMRC adviser.
The online service is simple to use and taxpayers will be able to choose how much to pay straight away and how much to pay each month.
Unfortunately, agents will not have access to the service so payment plans will need to be arranged by the taxpayer themselves, even if they have an accountant.
It is worth noting that interest will be payable on the deferred payments, from 1 February 2021 until the date these are paid. Also, if do not keep up with your repayments, HMRC can ask you to pay the full liability on demand.
Any Self-Assessment taxpayer not able to pay their tax bill on time, including those who cannot use the online service, can continue to use HMRC’s Time to Pay Self-Assessment helpline to agree a payment plan.
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