HMRC is reminding Self Assessment customers that they can spread the cost of their tax bill if they are unable to pay it in full by the 31 January 2025 deadline. The Time to Pay system allows taxpayers to set up manageable monthly payments and avoid further late payment penalties.
Individuals with tax bills of up to £30,000 can use HMRC's online service to set up a payment plan without needing to contact HMRC. Those with liabilities exceeding this amount can still apply but will need to speak directly with HMRC.
Myrtle Lloyd, HMRC’s Director General for Customer Services, explains:
“We’re here to help customers get their tax right and if you are worried about how to pay your Self Assessment bill, help and support is available. Customers can set up their online payment plan to suit their own financial circumstances and can spread those payments across a maximum of 12 months. It is a valuable option for someone needing extra flexibility in meeting their tax obligations.”
To use the Time to Pay arrangement, taxpayers must first file their Self Assessment tax return. The deadline for filing a tax return and making any necessary payment is 31 January 2025.
Tax bills can be paid via the secure HMRC app or online at GOV.UK. Detailed payment options and a helpful video explaining Self Assessment tax bills are available on GOV.UK. For additional guidance, HMRC provides online resources, including video tutorials, to support all taxpayers, including those filing for the first time.
HMRC advises taxpayers to prepare early by gathering the required information to file their return, reducing last-minute stress and gaining clarity on the amount owed. For those entering a Time to Pay arrangement, it’s crucial to budget carefully to ensure monthly payments are made on time, as missed payments incur interest and penalties.
Taxpayers are urged to remain vigilant against scams. Before sharing any personal or financial information, they should consult the 'HMRC tax scams' checklist on GOV.UK. Importantly, HMRC login details must never be shared, as they can be exploited for fraudulent activities.
For those receiving a Simple Assessment letter, the payment deadline is also 31 January 2025. These letters are issued to individuals with outstanding Income Tax from the 2023–2024 tax year that cannot be collected via PAYE. Payments for Simple Assessment can also be made in full or through smaller instalments as long as the balance is cleared before the deadline.
By utilising HMRC's tools and support, taxpayers can manage their commitments effectively and avoid unnecessary financial strain.