What is HMRC’s Time to Pay Scheme?
If you can’t pay your Self-Assessment tax bill in full by the deadline, HMRC’s Time to Pay (TTP) scheme offers a practical solution. It allows eligible taxpayers to spread their bill into manageable monthly instalments, helping them avoid penalties and financial stress.
In the last tax year, 44,800 customers used this facility to spread nearly £148 million in tax payments
Who is Eligible for Time to Pay?
You can set up a Time to Pay arrangement online if you:
- Are registered for Self-Assessment
- Have filed your latest tax return
- Owe less than £30,000
- Can pay the balance within 12 months
- Apply within 60 days of the payment deadline
If you owe more than £30,000 or need longer than 12 months, you must call HMRC on 0300 200 3822.
How Does It Work?
Setting up a plan is simple:
- Log in to your Self-Assessment account via the Government Gateway.
- Access the Time to Pay portal and provide:
- Your Unique Taxpayer Reference (UTR)
- Bank details
- Income, expenses, and savings information
- Agree on a monthly repayment plan you can afford.
Important: HMRC charges interest on outstanding balances from 1 February until the debt is cleared.
What Happens If You Miss a Payment?
If you miss a payment, HMRC will usually contact you to discuss options. In some cases, you may be able to add a new tax bill to an existing plan, but this is not guaranteed.
If no agreement is reached, HMRC can cancel your arrangement and demand full payment, even recovering funds directly from your bank account.
Why Get Professional Advice?
While the online system is straightforward, tax rules can be complex. An accountant can:
- Ensure your return is accurate and on time.
- Identify allowable expenses to reduce your bill.
- Advise on the best approach if you’re struggling to pay.
At Accounting People Ltd, we help individuals and businesses stay compliant and stress-free. If you’re worried about your tax bill, don’t wait, contact us today
Key Takeaway
The Self-Assessment deadline is 31 January for both filing and payment. If you can’t pay in full, act early, log into HMRC’s Time to Pay portal and set up a plan that works for you.
