As part of the Chancellor’s announcement this month, Self-Assessment customers are now able to apply online to spread the cost of their tax bill into monthly payments, without the need to call HMRC.
To help ease the potential financial burden due to the pandemic, the online ‘Time to Pay’ service has been increased to £30,000 for Self-Assessment customers. Once your 2019-20 tax return is completed, you can use the online service through www.gov.uk and set up a direct debit to pay any tax owed in monthly instalments, up to a 12 month period.
In order to set up your own self-serve ‘Time to Pay’, you must meet the following requirements:
- no outstanding tax returns
- no other tax debts
- no other HMRC payments set up
- your Self-Assessment tax bill is between £32 and £30,000
- it is no more than 60 days since the tax was due for payment.
If you don’t meet the requirements stated above, you may still be able to qualify, but will have to call HMRC in order to set this up.
Once set up, you will have to pay interest on any tax paid late and interest will be applied to the outstanding balance from 1st February 2021.
If you would like more information, please feel free to contact a member of Team SAS.
