Self-Assessment: Time To Pay Threshold Raised To £30,000
Good news for taxpayers ...
POSTED BY ROGER EDDOWES ON 19/11/2020 @ 8:00AM
More individuals registered for self-assessment can now use the Time to Pay service as HMRC has raised the threshold from £10,000 to £30,000 in an attempt to support more taxpayers through the Coronavirus pandemic ...
Raising the Time to Pay threshold is a very significant move by the Government!
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Once a taxpayer's 2019/20 tax return has been completed, they can use the Government Gateway to set up a 12-month direct debit and pay what they owe in instalments. HMRC has said it believes up to 95% of self-assessment taxpayers due to make tax payments on or before the 31st January 2021 could qualify to use Time to Pay, without needing to speak to an HMRC advisor.
However, there are some criteria to use this service:
The taxpayer has no outstanding tax returns, other tax debts or payment plans set up with HMRC
The tax due is between £32 and £30,000
The Time to Pay plan is set up no later than 60-days following the 31st January 2021
Anyone not meeting these criteria can still call HMRC on 0300 200 3822.
I feel this is a very significant move by the Government, and it shows they are really trying hard to support as many people as possible whilst still maintaining renewed growth in the economy.
The deadline to submit a completed self-assessment tax return for 2019/20 is the 31st January 2021.
Until next time ...
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 or need to speak to someone about your 2019/20 tax return, call me on 01908 774320, leave a comment below or click here to ping over an email and let's see how I can help you.
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About Roger Eddowes ...
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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