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Self Assessment Tax Payment Plans Explained

If you cannot pay your tax bill, then you may be able to make arrangement for self assessment tax payment plans. This will allow you to give yourself extra time to pay what you owe. It’s also a good way to settle any financial problems you have with your payments on accounts. However, it’s a good idea to think things through carefully first so you know what your’re getting yourself into. Here, I explain how to find out about payment plans and the way they work. In case you need to know, I also clarify how you arrange for more time to pay your tax bill.

Friendly Disclaimer: Whilst I am an accountant, I’m not your accountant. The information in this article is legally correct but it is for guidance and information purposes only. Everyone’s situation is different and unique so you’ll need to use your own best judgement when applying the advice that I give to your situation. If you are unsure or have a question be sure to contact a qualified professional because mistakes can result in penalties.

1. What is a Self Assessment Payment Plan?

A payment plan is also known as a ‘time to pay’ arrangement. It is a formal arrangement with HMRC to pay your outstanding tax in agreed instalments, in the event you cannot pay your self-assessment tax bill in full.

HMRC Tax Payment Plans Explained

2. How to Arrange a Tax Payment Plan

If you owe less than £30,000 in tax, you can arrange your time to pay online through your .GOV account. You’ll need to make sure you have filed your tax return, are within 60 days of the payment deadline and will repay what you owe in less than 12 months.

If you owe more then £30,000 or need more than 12 months to pay your debt, you’ll need to call HMRC to talk about a time to pay arrangement on 0300 200 3822.

While HMRC tax payment plans are not always easy to get, they can help you out of any financial woes. If you go through this process, it can help to identify why these debts came about and how future problems can be averted before they arise.