COVID-19 Update – 6 October – Self-assessment time to pay extended

The threshold for using HMRC’s self-service time to pay facility has been increased from £10,000 to £30,000. This on-line facility is accessed through the government gateway and will allow individuals to set up a direct debit and pay their tax in monthly instalments over a period of up to 12 months.  As ever there are conditions to be met:

• The overall amount payable must not exceed £30,000
• You must have no existing payment plans set up with HMRC, no other tax debts and no outstanding returns
• The time to pay arrangement must be set up no later than 60 days after the due date of the debt

Once your 2019/20 return has been filed, you can use the online facility to spread outstanding amounts relating to 2019/20 and the first payment on account due for 2020/21. However, unlike the deferment offered for the July 2020 payments on account, this new arrangement will carry interest from 1 February 2021.

If you need longer than 12 months to pay or have a liability over £30,000, the self-assessment payment helpline is still available on 0300 200 3822.

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