Make Time To Pay Arrangements Online And Avoid Calling HMRC
Do you meet the criteria?
Posted by Roger Eddowes on 20/02/2023 @ 8:00AM
If you are unable to pay your tax bill on time, then you can set up a Time to Pay arrangement with HMRC. There are a number of circumstances where this can be done for self-assessment and employers' PAYE ...
No other payment plans or debts with HMRC must exist before a Time to Pay arrangement can be set up online!
It's been possible to set up Time to Pay arrangements online for a number of years. The limit was increased from £10,000 to £30,000 in October 2020. Creating an online Time to Pay arrangement for employers' PAYE was introduced in December 2022.
"If you are outside the conditions of Time to Pay, you'll need to speak to HMRC directly!"
Though the £30,000 threshold applies to self-assessment, it's only £15,000 for employers' PAYE. Time to Pay arrangements must be set up within 60 days of the payment deadline for self-assessment and within 35 days for employers' PAYE.
There are limits on the timescales for repayment as well. For self-assessment, it's 12 months and with employers' PAYE it's six. All outstanding returns must have been filed before making an arrangement.
Obviously, interest is charged when payments are made outside the deadlines and HMRC offers a lot of guidance around this. It's also worth noting that no other payment plans or debts with HMRC must exist before a Time to Pay arrangement can be set up online.
And finally, all underpaid tax has a 5% penalty from the 28th of February 2023 so if you haven't been able to pay all you owe, get a Time to Pay arrangement set up as soon as you can.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about Time to Pay arrangements, it may be a great idea to call me on 01908 774320 and let's see how I can help you.
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Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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