This year has been tricky at best and we are all aware of the looming January deadline from HMRC. But it looks like they are putting schemes in place to help support businesses.
If you are due to submit your self-assessment for the 2019/20 tax year in January 2021, you can now apply for additional support to help spread the cost of your tax bill into monthly payments without the need to call HMRC.
This has been a welcome announcement for self-assessment clients to help ease any potential financial burden they may be experiencing due to the coronavirus pandemic.
How to use the service
Once the 2019/20 tax return has been submitted you will be able to use the online self-serve “Time to Pay” facility through gov.uk. This will allow you to set up a direct debit and pay any tax that is owed in monthly instalments up to a 12-month period.
To be able to use the “Time to Pay” facility, you must meet the following requirements:
- No outstanding tax returns
- No other tax debts
- No other HMRC payment plans set up
How does it work?
The debt needs to be between £32.00 – £30,000.00 and the payment plan needs to be set up no later than 60 days AFTER the due date of the debt. The due date of the debt will be 31st January 2021 – so as long as it is set up before the end of March, you can use this self-serve option.
One thing to note, interest will be applied for outstanding tax and paid over a payment plan, so it’s important you bear this in mind when you are considering your options.