HMRC Time to Pay Arrangements
Post Author:
Rona Burns
Date Posted:
January 16, 2023
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If you cannot pay your tax bill and need help you should contact HMRC as soon as possible.
Setting up a payment plan
To set up a payment plan you will need:
- the relevant reference number for the tax you cannot pay, such as your unique tax reference number for self assessment
- your bank account details
- details of any previous payments you have missed
You may be able to set up a payment plan online, depending on which type of tax you owe and how much you owe.
Self Assessment
You can set up a payment plan to spread the cost of your latest Self Assessment bill online without contacting HMRC if:
- you owe £30,000 or less
- you do not have any other payment plans or debts with HMRC
- your tax returns are up to date
- it is less than 60 days after the payment deadline
Employer’s PAYE contributions
You can set up an employer’s PAYE payment plan online if you:
- owe less than £15,000
- are within 35 days of the payment deadline
- plan to pay your debt off within the next 6 months
- do not have any other payment plans or debts with HMRC
- have submitted any employers’ PAYE submissions and Construction Industry Scheme (CIS) returns that are due
If you do not meet the criteria to set up a payment plan online
You will need to contact HMRC.
They will ask you:
- if you can pay in full
- how much you can repay each month
- if there are other taxes you need to pay
- how much money you earn
- how much you usually spend each month
- what savings or investments you have
If you have savings or assets, HMRC will expect you to use these to reduce your debt as much as possible.
If your company is in tax debt HMRC will ask you to propose how you will pay your tax bill as quickly as you can. They will ask questions about your proposal to make sure it is realistic and affordable for you.
HMRC will expect you to reduce your debt as much as possible before setting up a payment plan by releasing assets like stock, vehicles and shares.
HMRC may ask company directors to:
- put personal funds into the business
- accept lending
- extend credit
Contacting HMRC by Phone
Self Assessment Payment Helpline
Call 0300 200 3822 if you have missed your Self Assessment payment deadline and cannot set up a payment plan online.
Payment Support Service
Call the Payment Support Service on 0300 200 3835 if you cannot set up an online payment plan or pay in full before your payment deadline.
The HMRC phone lines opening hours are:
Monday to Friday: 8am to 6pm
Closed on weekends and bank holidays.
The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.
