Self assessment customers can now apply online to spread the cost of their tax bill into monthly payments without the need to call HMRC.
The online self-serve ‘Time to Pay’ service has been increased to £30,000 for self assessment customers.
Once individuals have completed their tax return for the 2019-20 tax year, they can use the online self-serve ‘Time to Pay’ service through GOV.UK to set up a direct debit and pay any tax that is owed in monthly instalments, up to a 12-month period.
If they wish to set up their own self-serve ‘Time to Pay’, they must meet the following requirements:
- no outstanding tax returns
- no other tax debts
- no other HMRC payments set up
- their 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 they do not meet these requirements, they might still qualify for Time to Pay, but will need to call HMRC to set this up.
If they set up a ‘Time to Pay’ arrangement, they will have to pay interest on the tax paid late. Interest will be applied to any outstanding balance from 1 February 2021.
This article has been shared from ACCA In Practice, to whom copyright belongs. Whitefield Tax are an ACCA Member Firm