Help from taxman to pay your bill

Independent practitioners struggling to pay their January tax bill due to Covid-induced income problems are being offered help from HM Revenue and Customs (HMRC).

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

HMRC said that where customers were struggling to pay their bill in full, the self-serve Time to Pay service allowed self-assessment customers to manage how they paid their tax liabilities. 

Customers can use the online service for tax bills worth up to £30,000 without the need to talk to HMRC. The service will create a bespoke monthly payment plan for the customer based on how much tax is owed and the length of time needed to pay.

Last year, 123,000 tax payers used self-serve Time to Pay to spread the cost of their 2019-20 tax bill, worth £460m.

Customers have until 31 January 2022 to complete their 2020-21 tax return and pay their bill. If they cannot pay in full, customers can set up their own Time to Pay arrangement online if they:

  • Have filed their 2020-21 tax return;
  • Owe less than £30,000;
  • Are within 60 days of the payment deadline;
  • Plan to pay their debt off within the next 12 months or less.

If customers owe more than £30,000, or need longer to pay, they should call the 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. To see if you’re eligible to set up a payment plan, go to GOV.UK and search ‘pay my self-assessment’.