With the Self Assessment tax deadline of 31 January 2025 approaching, taxpayers are being encouraged to plan ahead. For those concerned about paying their bill in one lump sum, HMRC’s ‘Time to Pay’ arrangement offers a practical solution by allowing payments to be spread over manageable instalments.
Why use Time to Pay?
The service is designed to help individuals who may struggle to meet their full payment by the deadline. By arranging a payment plan, taxpayers can avoid late payment penalties as long as they keep to the agreed schedule.
How does it work?
- Eligibility: If your tax bill is £30,000 or less, you can arrange a payment plan online without speaking to HMRC directly. For bills exceeding £30,000, you’ll need to contact HMRC to discuss your options.
- Tax Return First: You must file your Self Assessment tax return before setting up a Time to Pay arrangement.
- Flexible Payments: Payments are typically spread over 12 months, helping reduce the immediate financial strain.
Interest will typically be charged on the amount to be paid as part of the Time to Pay arrangement
HMRC reports that over 15,000 taxpayers have already used Time to Pay for the 2023/24 tax year. Acting early ensures you have a clear plan in place and can avoid last-minute complications.
Need support?
If you’re unsure about setting up a Time to Pay arrangement or need help filing your tax return, our team is here to assist. Don’t leave it too late – reach out today to ensure everything is managed smoothly and stress-free.
For more details, visit the official HMRC guidance: Time to Pay on gov.uk.