HMRC have raised the threshold for the Self assessment ‘time to pay’ online service from £10,000 to £30,000.
Following the Chancellor of the Exchequer’s announcement on the 24th September, the limit for the online service used to set up payment plans has been raised to £30,000. This is part of the Governments support for businesses and individuals through the unprecedented times ahead.
As part of his speech, the Chancellor announced that self assessment taxpayers could pay their deferred payment on account bill from July 2020, any outstanding tax owed for 2019/20 and their first payment on account bill for this current tax year in monthly installments, rather than as two payment in January and July.
Using the ‘time to pay’ service
Once the 2019/20 tax return is completed , those who have payment to make have the option to use the online service to set up a direct debit and pay any tax owed by monthly installments. The tax owed will still need to be paid within a 12 month period.
The service will be available providing the following s met:
- have no outstanding tax returns
- no other tax debts
- no other HMRC payment plans set up
- the tax owed is between £32 and £30,000
- the payment plan is set up no later than 60 days after the debts due date
Taxpayers using self-serve time to pay will be required to pay any interest on the tax owed. Interest will be applied to any outstanding balance from 1 February 2021.
Those with self assessment tax payments over £30,000, or who need longer than 12 months to pay in full, may still be able to set up a time to pay arrangement by calling the self assessment payment helpline on 0300 200 3822.
The deadline to complete self assessment tax returns for 2019/20 is 31 January 2021.
If you need assistance with you 2019/20 self assessment contact us here