From 1 October 2020 HM Revenue and Customs (HMRC) has increased the threshold for paying tax liabilities to £30,000 for Self Assessment customers to help ease any potential financial burden they may be experiencing due to the coronavirus (COVID-19) pandemic.
The online payment plan service can already be used to set up instalment arrangements for paying tax liabilities up to £10,000.
Customers who wish to set up their own self-serve Time to Pay arrangements must meet the following requirements:
- they need to have no:
- outstanding tax returns
- other tax debts
- other HMRC payment plans set up
- the debt needs to be between £32 and £30,000
- the payment plan needs to be set up no later than 60 days after the due date of a debt
Customers 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.
Self Assessment customers can set up their own online payment plan to help spread the cost of their tax bill.
Be aware of scams claiming to be from HMRC, offering to help you set up payment plans to pay any tax owed. These scams are trying to harvest your details to steal your money.
Check GOV.UK for information on how to recognise genuine HMRC contact.