Self-Assessment Time to Pay Scheme

Further to our article of 29 September 2020 the Government have confirmed further conditions if you wish to set up a self-serve “Time to Pay” arrangement to settle Self-Assessment income tax liabilities due on 31 January 2021.
 
The liabilities due on 31 January 2021 can be settled by instalments over a 12 month period and the direct debit can be set up through the Government Gateway account.  The additional conditions to be eligible to set up your own self-serve “Time to Pay” arrangement are as follows:

• there are no outstanding tax returns, so your 2019/20 tax return must be submitted
• you have no other tax debts
• you have no other HMRC payment arrangements already in place
• your Self-Assessment tax bill is between £32 and £30,000
• it is no more than 60 days since the tax was due for payment

 
If you do not meet these conditions, you may still be able to set up a “Time to Pay” arrangement, but you will need to call HMRC on 0300 200 3822 and negotiate this with them.  It is likely that you will have to provide evidence of the reason you cannot pay and produce cash flow forecasts to get this agreed.
 
If you set up a “Time to Pay” arrangement, you will have to pay interest on the tax paid late with interest being applied to any outstanding balance from 1 February 2021.
 
We are here to help so please contact us if you wish to discuss any of the above.