Detail for Enhanced time-to-pay for self assessment bills
9th of October, 2020Just to update you on the details of the scheme to defer self assessment bills. (This is called the “enhanced payment arrangements”)
The arrangements apply to:
- The second payment on account for 2019/20 (originally due by 31 July 2020)
- The balancing payment for 2019/20 (due by 31 January 2021)
- The tax due for 2019/20 (due by 31 January 2021) where no payments on account have been made
- The first payment on account for 2020/21 due on 31 January 2021.
All or any of these amounts can be paid in monthly instalments over up to a 12 month period. This option can be set up automatically on line by using the link
https://www.gov.uk/pay-self-assessment-tax-bill/pay-in-instalments
There are conditions:
- The 2019/20 tax return must have been filed (allowing 72 hours for HMRC to process it after filing)
- There must be no other tax debts or HMRC payment plans already set up
- The tax debt must be between £32 and £30,000
- The payment plan must be set up no later than 60 days after the due date of the debt (by 1 April 2020)
Two further points to note
- if the payment plan is not set up by 2 March 2021 (30 days after the due date), late payment penalties will be triggered.
- Interest will run from 1 February 2021. (No interest was charged where tax payers didn’t pay the payment on account due on 31 July 2020). HMRC interest is charged at 2.25%.
If you owe > £30,000 or need longer than 12 months to pay, it may be possible to set up a “time to pay” arrangement by calling the self-assessment payment helpline on 0300 200 3822.
As usual – if you need any further information, please call/email.
