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Time is ticking for self-assessment tax payments due 31st January 2021

In order to support individuals who require additional time to pay, HMRC is encouraging use of its online tool to set up an instalment plan for self-assessment tax payments via a Time to Pay arrangement.

The online tool can be used for tax liabilities of up to £30,000.

This is a self-serve process which means you must apply online yourself, unfortunately, we cannot do this on your behalf.

Provided all the criteria are met, a short-term payment arrangement can be put in place without having to discuss this with HMRC directly, and without having to provide details of current income and expenditure.

Please note that arranging the instalment plan does not avoid incurring interest charges. Interest at 2.6% per annum will still be charged from 1st February 2021 on unpaid amounts. However late payment penalties are avoided if the payment plan is in place and payments are made as agreed.

The online tool can only be used after your 2019/20 return has been submitted, and there must be no outstanding return, debt or existing payment plans with HMRC.

The payment plan must be in place within 60 days of the 31st
January 2021 payment becoming due and payments must be made by direct debit.

If you wish to set up a payment plan online please follow the link below, scroll to “If you cannot afford to pay your latest bill” and there is a direct link which will require you to enter your Government Gateway ID:


If you wish to discuss any of the above in further detail with a member of our tax team, please give us a call on 01226 298 298.