The Chancellor of the Exchequer recently announced that the self-employed and other taxpayers will have more time to pay taxes due in January 2021.
This enhancement builds on the self-assessment deferral provided by the government in July 2020. Taxpayers who have up to £30,000 due will be able to use HMRC’s online Time to Pay facility to arrange payment over an additional period of up to 12 months. In essence, this means that self-assessment liabilities that are due in July 2020 and January 2021 won’t need to be fully settled until January 2022.
Who can take advantage of Time to Pay?
Taxpayers can use the online Time to Pay facility if they:
- Have no other tax debts, or payment plans with HMRC
- Owe £30,000 or less
Please note that although the taxpayer can choose how much to pay straight away, and how much in settlement each month, there will be interest due.
If the debt is more than £30,000 or longer than 12 months is needed to pay, a Time to Pay facility may still be able to set up. Taxpayers should call the self-assessment payment helpline on 0300 200 3822 for more information.
The information provided in this blog is for general informational purposes only and should not be considered professional advice. As far as we are aware, the content is accurate at time of publication. Torgersens assumes no responsibility for errors or omissions in the content or for any actions taken based on the information provided.
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