HMRC’s Time to Pay Arrangement: A Guide to Managing Your Tax Payments

Understanding HMRC’s Time to Pay Arrangement

As the 31 January 2024 tax payment deadline approaches, it’s crucial to understand the options available if you’re receiving difficulties in meeting your tax obligations. HMRC’s Time to Pay arrangement offers a viable solution for those struggling to pay their tax on time.

Eligibility for the Online Payment Plan

Eligible taxpayers can benefit from the convenience of setting up an instalment payment plan online for Self-assessment tax liabilities up to £30,000. This option, primarily aimed at easing the process, requires taxpayers to have filed their latest tax return within 60 days of the payment deadline and plan to settle their dues within the next 12 months.

How to Access the Self-Serve Time to Pay Facility

Qualifying for a Time to Pay arrangement via the self-serve online facility allows taxpayers to manage their payments without needing to consult an HMRC adviser. This streamlined process aims to reduce stress and provide a straightforward solution for managing tax payments.

Requirements for Taxpayers Outside the Online Criteria

Not all taxpayers will meet the criteria for the online Time to Pay option. Those with tax payments outside these parameters need to engage directly with HMRC to discuss a tailored Time to Pay arrangement. These agreements are individually assessed, considering personal circumstances and liabilities.

HMRC’s Criteria for Granting Extra Time

It’s important to note that HMRC offers extended payment terms only to those they believe genuinely cannot pay their tax bill in full immediately but can do so in the future. If HMRC deems that extending the payment period won’t aid in settling the debt, they may require immediate payment and could initiate enforcement actions for non-compliance.