Nearly 100,000 taxpayers used HM Revenue & Customs’ (HMRC) Time to Pay self-serve facility to spread the cost of their 2020/21 tax bill, it has been revealed.
The figures, published by the tax authority, come after the 31 January Self Assessment deadline.
According to HMRC, almost 100,000 Self Assessment customers have used online payment plans to spread the cost of their tax bill into manageable monthly instalments since April 2021 – representing around £310 million in tax.
The authority says the scheme has helped thousands of self-employed business owners manage their finances in the wake of the coronavirus pandemic.
Commenting on the scheme, 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’.”
Could the Time to Pay service help you?
You can set up a Time to Pay arrangement if you:
- have filed your latest tax return
- owe less than £30,000
- are within 60 days of the payment deadline; and
- plan to pay your debt off within the next 12 months or less.
The report comes after HMRC waived late submission and payment penalties for one month, giving taxpayers until 28 February to complete their Self Assessment tax return for the 2020/21 tax year.
Late payment interest – currently 2.75 per cent – will continue to accrue from 01 February, however, incentivising taxpayers to pay as soon as possible.
For help and advice with related matters, please get in touch with our team today.