H M Revenue & Customs launches time to pay tax arrangements
If you have arrears of tax, whether it be self-assessment, PAYE or VAT, it is now possible to request a time to pay from HMRC directly online. Unfortunately, there is no similar arrangement in place as yet in respect of corporation tax.
This is to be welcome, particularly given the often very lengthy response times when trying to contact HMRC by telephone.
The details of the various arrangements possible are given below. Please note that in all cases, it is necessary to request a payment plan online within certain deadlines, which vary from one tax to the other.
In order to access this service, taxpayers need to log in using the Government gateway. If you require any assistance with how to initiate this process, then please do not hesitate to contact us.
Setting up a payment plan
To set up a payment plan you’ll need:
- the relevant reference number for the tax you cannot pay, such as your unique tax reference number
- your bank account details
- details of any previous payments you’ve missed
You may be able to set up a payment plan online, depending on which type of tax you owe and how much you owe.
If you owe tax from Self Assessment
You can set up a Self Assessment payment plan online if you:
- have filed your latest tax return
- owe £30,000 or less
- are within 60 days of the payment deadline
- do not have any other payment plans or debts with HMRC
If you owe employers’ PAYE contributions
You can set up an employers’ PAYE payment plan online if you:
- owe £15,000 or less
- are within 35 days of the payment deadline
- plan to pay your debt off within the next 6 months
- do not have any other payment plans or debts with HMRC
- do not have outstanding penalties to pay
- have submitted any employers’ PAYE submissions and Construction Industry Scheme (CIS) returns that are due
If you owe tax from VAT
You can set up a VAT payment plan online if you:
- have filed your latest tax return
- owe £20,000 or less
- are within 28 days of the payment deadline
- do not have any other payment plans or debts with HMRC
- plan to pay your debt off within the next 6 months
You cannot set up a VAT payment plan online if you’re in the Cash Accounting Scheme, Annual Accounting Scheme, or you make payments on account.
