Tens of thousands of self-employed workers have used HM Revenue & Customs’ (HMRC) Time to Pay service to spread out tax bills, the latest figures have revealed.
The Time to Pay facility has offered a lifeline to those who may struggle to pay their tax bill in full in the wake of the coronavirus pandemic.
Since April this year, more than 20,000 Self Assessment customers have set up a monthly payment plan to spread out some £46 million in Income Tax and National Insurance Contributions (NICs).
The Time to Pay service enables self-employed business owners and landlords to manage tax bills worth up to £30,000 without speaking directly to HMRC.
Through the service, taxpayers can create a bespoke monthly payment plan based on how much tax is owed and the length of time needed to pay.
At the height of the coronavirus pandemic, a record 123,000 customers used the service to spread the cost of their 2019/20 tax bill, worth an estimated £460 million.
Commenting on the figures, 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’.”
Can I set up a Time to Pay arrangement?
If you can’t pay your tax bill in full, you may set up a Time to Pay arrangement providing you:
- have filed your 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 your debt off within the next 12 months or less
You can set up a Time to Pay arrangement here.
For help and advice with related matters, please get in touch with our team today.
