As part of their Winter Economy Plan, the government recently announced the launch of their enhanced Time to Pay service.
From 1 October 2020, this extended service has allowed eligible taxpayers to spread their January 2021 tax payment over 12 months.
Individuals who wish to set up a Time to Pay arrangement must meet the following requirements:
Payments due on 31 January 2021 that are covered by the arrangement include the following:
Anyone using the service will not be charged late payment penalties, but will be required to pay interest on any amounts that remain outstanding from 1 February 2021.
Once signed in to your account, navigate to the Self-Assessment section, access ‘Your Balance’ and select the option to pay by instalments.
You will then be able to set up a direct debit to pay the tax owed in monthly instalments, up to a period of 12 months.
If you are unable to use the online service, or have a tax liability of more than £30,000, you can call HMRC’s Payment Support Service on 0300 200 3822 which is open Monday to Friday, 08:00 to 16:00.
Please note that this is not something that your agent can set up on your behalf, however if you require any advice then please get in touch with your usual Duncan & Toplis adviser or contact our team.