HMRC Supports Taxpayers with Easier ‘Time to Pay’ access

The effect of COVID-19 on personal income and business turnover has left many with little cash to pay their tax bill, however from the outset of the outbreak, the Government has offered support with permitted deferred payments to avoid late payment penalties.

The ‘Time to Pay’ arrangement has previously been considered awkward, however HMRC have recently made changes to make it more accessible. Read on below to see if you can benefit.

Government Coronavirus response

In March, as part of the Government’s response, Rishi Sunak announced it would be possible for self-assessment tax payments due in July 2020, to be deferred to a new deadline of 31st January 2021 if the reason for not being able to pay was due to Coronavirus.

VAT payments due before 30th June 2020 were also given an extension to 31st March 2021.

You do not need to inform HMRC if you need to delay the above tax payments due to Coronavirus.


HMRC Time to Pay

If you have an upcoming tax bill and you might struggle to pay it ahead of the deadline, HMRC offer assistance in the form of Time to Pay. Essentially, this has been set up to assist individuals by agreeing a time frame with HMRC for the tax to be paid in installments with interest. This is normally done over the telephone.

However, for individuals who owe up to £10,000 tax on personal or business income, HMRC recently made changes to the Time to Pay procedure for self-assessment tax bills whereby you might be able to arrange a payment schedule online, rather than having to speak to their debt management department.

You must contact HMRC as soon as possible if you might need to set up a Time to Pay arrangement.


Corporation and other tax bills

Given the current economic conditions and the detrimental impact on businesses, HMRC are offering the opportunity to discuss payment options where taxes are owed to them. Whilst this cannot be organised online, you can contact their Payment Support Service (PSS) team on 0300 200 3835 ensuring you have the following details before you call:

  • your reference number (for example, your 10-digit Unique Taxpayer Reference or VAT reference number)
  • the amount of the tax bill you’re finding it difficult to pay and the reasons why
  • what you’ve done to try to get the money to pay the bill
  • how much you can pay immediately and how long you may need to pay the rest
  • your bank account details

Please click here to find out more.

If you are unsure about paying any form of tax to HMRC, or are worried about your financial circumstances, our expert and friendly Corporate and Personal Tax team are here to help. Please call 0161 905 1801 in South Manchester, or you can reach us on 01925 830 830 in Warrington.