Time To Pay Service has just been announced by HMRC to help ease any potential financial burden they may be experiencing due to the coronavirus pandemic.
Self Assessment customers can now apply online to spread the cost of their tax bill. This can be spread into monthly payments without the need to call HMRC.
What is the Time To Pay service?
The online self-serve ‘Time to Pay’ service, has been increased to £30,000 for Self Assessment customers.
Once you’ve completed your tax return for the 2019-20 tax year, you can use the ‘Time to Pay’ service. This new online self-serve service can be set up through GOV.UK. You will be able to set up a direct debit and pay any tax that is owed in monthly instalments, up to a 12-month period.
What are the requirements?
- You don’t have outstanding tax returns
- No other tax debts
- Not using any other HMRC payment plans
- 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 do not meet these requirements, you might still qualify for Time to Pay. Phone HMRC to check.
Lastly, if you set up a ‘Time to Pay’ arrangement, you will have to pay interest on the tax paid late. Interest will be applied to any outstanding balance from 1 February 2021.