Self Assessment customers spreading £69m in tax payments
HM Revenue and Customs (HMRC) has revealed almost 25,000 Self Assessment customers have set up an online payment plan to manage their tax liabilities in up to 12 monthly instalments, totalling £69.1 million.
In October, HMRC increased the threshold for self-serve Time to Pay arrangements from £10,000 to £30,000 for Self Assessment customers.
Once they have completed their 2019-20 tax return and know how much tax they owe, customers can use the self-serve facility to set up monthly direct debits and spread the cost of their tax bill.
The 31 January Self Assessment deadline is less than three weeks away but for almost 25,000 customers, who have completed their tax returns and set up an online payment plan since 1 October 2020, they can start 2021 knowing their tax liabilities are under control.
The self-serve Time to Pay threshold was increased to help businesses and individuals who have been affected by the coronavirus pandemic. Supporting Self Assessment customers to manage their tax bills can help ease their financial commitments into more manageable monthly payments. To date, the average value of payment plans set up online is £2,821.
Customers can apply for the payment plan, however they must meet the following requirements:
- they need to have no:
- outstanding tax returns
- other tax debts
- other HMRC payment plans set up
- the debt needs to be between £32 and £30,000
- the payment plan needs to be set up no later than 60 days after the due date of a debt.
“We know the past year has been tough for many businesses and self-employed people, which is why we’re helping them spread the cost of their tax bill into monthly payments,” said HMRC’s interim director general for customer services, Karl Khan.
“Self Assessment customers can use the self-serve Time to Pay facility for amounts up to £30,000 with almost 25,000 customers already benefiting from the service.”