You can choose to pay your self-assessment tax bill by the end of January 2022 – or set up a self-serve Time to Pay arrangement.

More than 20,000 self-assessment customers have used HMRC’s online monthly payment plan since April to spread the cost of their tax bill, totalling £46 million so far.

You can use the online Time to Pay (TTP) service – without talking to HMRC – if your tax bill is worth up to £30,000. With TTP, you’ll have a bespoke monthly payment plan, based on how much tax you owe and how long you need to pay.

Last year, 123,000 customers used Time to Pay to spread the cost of their 2019/20 tax bill, worth £460 million.

Tax deadline

If you’re a self-assessment taxpayer, you have until 31 January 2022 to complete your 2020/21 tax return and pay your bill.

But if you can’t pay in full, you can set up your own TTP plan online if you:

  • Have filed your 2020/21 tax return
  • 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

If you owe more than £30,000, or need longer to pay, you should call HMRC’s self-assessment payment helpline on 0300 200 3822.

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.”

Be alert to fraudsters

HMRC is also reminding you to be alert if you’re contacted out of the blue by someone asking for money or personal information.

You should always type in the full online address – www.gov.uk/hmrc – to get the correct link for filing your tax return online, securely and free of charge.

HMRC sees high numbers of fraudsters emailing, calling or texting people claiming to be from the department. If in doubt, don’t reply directly to anything suspicious and instead contact HMRC immediately and search gov.uk for ‘HMRC scams’.

Our thoughts

With the impending deadline for self-assessment tax returns and payments, it’s important you have the funds available to pay your bill.

If you’re unable to pay, HMRC will usually let you set up a payment plan to make sure the money gets paid over a period of time.

But don’t ignore your tax bill, because that could result in bailiffs knocking on your door to collect the debt, in the worst-case scenario.

Please don’t bury your head in the sand. If funds are tight, make sure you set up a payment plan sooner rather than later.

Professional tax advice

For expert advice on a range of tax matters – from tax returns to trusts and estates – call us on 07813 434195 or email: stephanie.churchill@churchilltaxation.co.uk

Steph Churchill

Stephanie Churchill

Managing director & co-owner of Churchill Taxation