HM Revenue and Customs (HMRC) has revealed that almost 25,000 Self Assessment customers have set up an online payment plan to manage their liabilities in up to 12 monthly instalments, totalling £69.1 million.
HMRC increased the threshold for self-serve Time to Pay arrangements from £10,000 to £30,000 in October for Self Assessment customers. The threshold was increased to help businesses and individuals who have been affected by the Coronavirus pandemic.
Once completing their 2019-20 tax return customers can use the self-serve facility to set up direct debits and spread the cost of their bill.
There is less than three weeks to complete your January 31st Self Assessment.
Karl Khan, HMRC’s Interim Director General for Customer Services, said:
“We know the past year has been tough for many businesses and self-employed people, which is why we’re helping them spread the cost of their tax bill into monthly payments.
“Self Assessment customers can use the self-serve Time to Pay facility for amounts up to £30,000 with almost 25,000 customers already benefiting from the service.”
Customers can apply for the payment plan via GOV.UK. However, they must meet the following requirements:
- they need to have no:
- outstanding tax returns
- other tax debts
- other HMRC payment plans set up
- the debt needs to be between £32 and £30,000
- the payment plan needs to be set up no later than 60 days after the due date of a debt
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