Once a customer has filed their 2020/21 Self Assessment tax return, they can set up a Time to Pay arrangement for up to 12 months on debts up to £30,000, that they’re unable to pay in full. This can be done online at GOV.UK without speaking to HMRC.
Since April 2021, Self Assessment customers have used the online Time to Pay service to pay more than £310 million worth of tax in instalments. If a customer owes more than £30,000, or needs longer to pay, they should contact HMRC to discuss payment options.
The deadline for filing tax returns, paying any tax owed or setting up a payment plan was 31 January but, this year, HMRC has given customers extra time to meet their obligations without facing penalties. This means:
- anyone who did not file their return by the 31 January deadline will not receive a late filing penalty if they file by 28 February
- anyone who did not pay their tax liabilities by the 31 January deadline will not receive a late payment penalty if they pay their tax in full, or set up a time to pay arrangement, by 1 April