The Income Tax Self Assessment 31 January 2023 filing and payment deadline is rapidly approaching. HMRC note an increase in individuals using its Time to Pay (TTP) facility. The facility allows taxpayers to pay tax in instalments. Taxpayers must make a TTP with HMRC before the deadline for tax payment passes.
- Since 6 April 2022, nearly 21,600 taxpayers have set up a Time to Pay arrangement. This is an increase of about 3,900 compared to the previous year.
- A total of 142,000 taxpayers used the self-serve online facility in the 12 months to 5 April 2022.
- Time to Pay allows the taxpayer to arrange an affordable monthly payment plan.
- Applications can be made online if:
- The 2021-22 tax return has been filed.
- The liability is less than £30,000.
- The amount can be repaid in full within 12 months.
- If the liability is greater than £30,000 or more than a 12-month repayment plan is required, taxpayers should contact HMRC via the Self Assessment Payment Helpline on 0300 200 3822.
- Alternatively, if the taxpayer has employment, liabilities amounting to £3,000 or less can be collected in monthly instalments through PAYE.
Useful guides on this topic
Time to Pay agreement
Business and self-employed taxpayers with outstanding tax liabilities may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service.
Collecting tax debts via PAYE
When can HMRC collect tax debts via PAYE? What are the limits?