25,000 taxpayers set up monthly payment plans

Almost 25,000 self assessment taxpayers have set up an online payment plan to manage their tax liabilities in monthly instalments, totalling £69.1 million, HMRC has revealed today.

In October, HMRC increased the threshold for self-serve Time to Pay arrangements from £10,000 to £30,000 for self assessment taxpayers. 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. To date, the average value of payment plans set up online is £2,821.

Karl Khan, HMRC’s Interim Director General for Customer Services, said: “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.

“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.”

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.

Customers can apply for a payment plan via the gov.uk websiter the payment plan via GOV.UK. However, they must have no outstanding tax returns, other tax debts or other other HMRC payment plans set up. Also, the debt must be between £32 and £30,000, and the payment plan needs to be set up no later than 60 days after the due date of a debt.

  •  
  •  
  •  

Leave A Comment

You must be logged in to post a comment.

Latest News