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Pay January tax by instalments

Source: HM Revenue & Customs | | 02/12/2020

The deadline for submitting your 2019-20 Self-Assessment tax returns online is 31 January 2021. You should also be aware that payment of any tax due should also be made by this date. This includes the payment of any balance of Self-Assessment liability for the 2019-20 plus the first payment on account due for the current 2020-21 tax year. You may also need to pay the second payment on account for 2019-20 that was due on 31 July 2020 but was provided with an option to defer payment until 31 January 2021 as part of the government support measures during the coronavirus outbreak.

There are also other options to defer payments due on 31 January 2021 and pay by instalments over 12 months. This includes a self-serve Time to Pay facility online for debts up to £30,000 or by arrangement with HMRC.

Taxpayers that want to use the online option must meet the following requirements:

  • Have 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, and the payment plan needs to be set up no later than 60 days after the due date of a debt. Taxpayers can choose how much to pay straight away and how much they want to pay each month.

Taxpayers with Self-Assessment tax payments of over £30,000, or who need longer than 12 months to pay in full, can still set up a time to pay arrangement by calling the Self-Assessment payment helpline or the dedicated COVID-19 helpline.

Taxpayers using either option will be required to pay interest on any outstanding balance from 1 February 2021.

 

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