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Time To Pay: Pay Your January Tax Bill In Instalments

But do get it sorted soon ...


Posted by Roger Eddowes on 12/12/2022 @ 8:00AM

The cost of living crisis, including high energy bills, means you may struggle to pay your Self-Assessment tax bill in January. Help is available though, as you could set up a Time to Pay Arrangement with HMRC ...

HMRC will always take your income and expenditure into account when working out a Time to Pay Arrangement!

HMRC will always take your income and expenditure into account when working out a Time to Pay Arrangement!

copyright: rtimages / 123rf

Your 2021/22 Self-Assessment tax return must be filed by midnight on the 31st of January 2023. Any tax you owe for that period must be paid at the same time. But what if you're struggling to pay the bill?

"A Time to Pay Arrangement is made directly with HMRC!"

It allows you to pay your tax bill in more affordable monthly instalments. The arrangement can cover all outstanding amounts plus associated interest and penalties. In many cases, this can simply be done online, though, for larger amounts, you may need to contact HMRC directly and explain your circumstances and see if they'll accept an arrangement.

It's advisable that you set up your Time to Pay Arrangement before the 31st of January deadline as trying to sort it out when HMRC chases you for payment will be more difficult. Remember, if HMRC believes you can pay your bill in full, they will expect you to do that rather than setting up an arrangement.

You can set up a Time to Pay Arrangement online if:

  • you have filed your 2021/22 tax return

  • you owe less than £30,000

  • you are within 60 days of the payment date

  • you plan to pay your debt off within the next 12 months or less

To set up it up online, you will need to log in to your Government Gateway account.

HMRC will always take your income and expenditure into account and look at what assets you have when working out what you can afford to pay. HMRC will not usually expect the payments under the agreement to be more than 50% of your disposable income and the length of the arrangement will depend on how much tax you owe. There is no fixed length to a Time to Pay Arrangement and payments are usually made by direct debit.

It's worth noting I know some trusted brokers who can finance Income Tax, Corporation Tax and VAT when HMRC refuse to play ball. Get in touch if you'd like an introduction.

Until next time ...

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 making a Time to Pay Arrangement with HMRC, 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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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.