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The HMRC Time To Pay Scheme

The HMRC Time To Pay Scheme

What is it?

All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service.

These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.

Who is it for?

You are eligible if your business:

  • pays tax to the UK government
  • has outstanding tax liabilities

Those wishing to set up their own self-serve Time to Pay scheme arrangements must meet the following requirements:

  • They need to have no:
    • outstanding tax returns
    • other tax debts
    • other HMRC payment plans set up
  • The debt needs to be between £32 and £30,000
  • The payment plan needs to be set up no later than 60 days after the due date of a debt

How does it work?

On the 24 September 2020 an additional 12-month extension was given to the “Time to Pay” scheme meaning payments deferred from July 2020, and those due in January 2021, will now not need to be paid until January 2022. More details on this will be published by HMRC in due course.

Individuals using self-serve Time to Pay will be required to pay any interest on the tax owed from 1 February 2021. 


If you cannot pay because of coronavirus (COVID-19) you may be able to delay some tax payments without paying a penalty. You can:

  • Delay VAT payments due before 30 June 2020 until 31 March 2021
  • Delay your Self Assessment payment on account due in July 2020 until 31 January 2022

If you owe less than £10,000 you might be able to arrange to pay in instalments online.

Because of coronavirus (COVID-19), you can delay making your second payment on account due in July 2020. If you choose to delay, you’ll have until 31 January 2021 to pay it.

What should I do next?

If you have missed a tax payment or you might miss your next payment due to COVID-19, please call HMRC’s dedicated helpline: 0300 200 3835.

You are still required file your 2019/20 tax return by 31st January 2021 to avoid a fine. It is a requirement of the Time to Pay scheme that your return is filed on time.

If you have an upcoming payment due to HMRC that you would like to defer, you should call the helpline. HMRC will look at whether a time to pay arrangement can be put in place.

HMRC coronavirus helpline number is 0300 200 3835.

Opening hours are Monday to Friday 8am to 8pm, and Saturday 8am to 4pm. The helpline will not be available on Bank Holidays.

Contact the HMRC coronavirus (COVID-19) helpline if you cannot pay any other tax bills because of coronavirus.

If you’re self-employed and lost income because of coronavirus, you may be able to claim a grant through the COVID-19 Self-employment Income Support Scheme. HMRC will contact you if you’re eligible.

Critchleys Clients: If you have specific questions, please contact your Critchleys Accountant directly.

 


Published 24 March 2020
Last Updated 5 October 2020

5 October 2020

Who is it for?

Those wishing to set up their own self-serve Time to Pay scheme arrangements must meet the following requirements:

  • They need to have no:
    • outstanding tax returns
    • other tax debts
    • other HMRC payment plans set up
  • The debt needs to be between £32 and £30,000
  • The payment plan needs to be set up no later than 60 days after the due date of a debt

How does it work?

Individuals using self-serve Time to Pay will be required to pay any interest on the tax owed from 1 February 2021. 

24 September 2020
On the 24 September 2020 an additional 12-month extension was given to the “Time to Pay” scheme meaning payments deferred from July 2020, and those due in January 2021, will now not need to be paid until January 2022.

22 April 2020
What should I do next? Contact the HMRC coronavirus (COVID-19) helpline if you cannot pay any other tax bills because of coronavirus.

If you’re self-employed and lost income because of coronavirus, you may be able to claim a grant through the COVID-19 Self-employment Income Support Scheme. HMRC will contact you if you’re eligible.

20 April 2020
How does it work? 
If you cannot pay because of coronavirus (COVID-19) because of coronavirus you may be able to delay some tax payments without paying a penalty. You can:

  • Delay VAT payments due before 30 June 2020 until 31 March 2021
  • Delay your Self Assessment payment on account due in July 2020 until 31 January 2021

If you owe less than £10,000 you might be able to arrange to pay in instalments online.

Because of coronavirus (COVID-19), you can delay making your second payment on account due in July 2020. If you choose to delay, you’ll have until 31 January 2021 to pay it.

What should I do next? If you have missed a tax payment or you might miss your next payment due to COVID-19, please call HMRC’s dedicated helpline: 0800 024 1222.

2 April 2020

The HMRC’s dedicated helpline has been updated to 0300 200 3835.

24 March 2020
First published.

Find out more about Ian Timms

Ian Timms

Ian Timms

Ian is a Partner and the Head of Business Tax at Critchleys LLP.

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