Self Assessment tax customers in Knowsley can now apply online for additional support to help spread the cost of their tax bill into monthly payments from today.
The online payment plan service can already be used to set up instalment arrangements for paying tax liabilities up to £10,000. From 1 October 2020, HMRC has increased the threshold to £30,000 for Self Assessment customers, to help ease any potential financial burden they may be experiencing due to the coronavirus pandemic.
Self Assessment customers can pay their deferred payment on account bill from July 2020, any outstanding tax owed for 2019 to 2020 and their first payment on account bill for this current tax year in monthly instalments, up to 12 months, via this self-serve tool. Customers who need longer than 12 months to settle their tax liabilities are invited to contact HMRC in the usual way.
Once they have completed their tax return for the 2019 to 2020 tax year, those who have payments to make may have the option of using the online self-serve Time to Pay facility through GOV.UK to set up a direct debit and pay any tax that is owed in monthly instalments, up to a 12-month period.
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.
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. Self Assessment customers can set up their own online payment plan to help spread the cost of their tax bill by visiting https://www.gov.uk/pay-self-assessment-tax-bill/pay-in-instalments.