Almost 100,000 taxpayers have ‘Time to Pay’ arrangement
Almost 100,000 UK Self Assessment taxpayers have opted to pay their tax in instalments via online payment plans since April 2021, according to HMRC. Collectively, these taxpayers owe £310 million worth of tax.
Once a taxpayer has filed their 2020/21 Self Assessment tax return they can set up a ‘Time to Pay arrangement’ for up to 12 months on debts of up to £30,000. This can be done online at GOV.UK without speaking to HMRC. Those owing more than £30,000, or needing longer to pay, need to contact HMRC to discuss payment options.
The deadline for filing tax returns, paying any tax owed or setting up a payment plan was 31 January, but HMRC has given customers extra time to meet their obligations without facing penalties. This means:
• anyone who did not file their return by the 31 January deadline will not receive a late filing penalty if they file by 28 February.
• anyone who did not pay their tax liabilities by the 31 January deadline will not receive a late payment penalty if they pay their tax in full, or set up a Time to Pay arrangement, by 1 April.
• If customers owe more than £30,000, or need longer to pay, they should call the Self Assessment Payment Helpline on 0300 200 3822.
From 1 February, all outstanding amounts were subject to interest.
The 2020/21 tax return must include any grants or payments from any of the government’s Covid-19 support schemes, up to 5 April 2021, such as:
• Self-Employment Income Support Scheme.
• Coronavirus Job Retention Scheme.
• other Covid-19 grants and support payments such as self-isolation payments, local authority grants and those for the Eat Out to Help Out scheme.
The £500 one-off payment for working households receiving tax credits should not be reported in Self Assessment.