If you cannot pay your self assessment tax bill in full you may be able to set up a payment plan to pay it in instalments. This is called a “Time to Pay” arrangement.
You will not be able to set up a payment plan if HMRC does not think you will keep up the payments. If HMRC can’t agree a payment plan with you they will ask you to pay the amount in full.
If you owe tax from self assessment you can set up a self assessment payment plan online by signing in using your Government Gateway access at https://www.access.service.gov.uk/login/signin/creds provided 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
When setting up the plan HMRC will ask you about your income and spending.
If you cannot set up a payment plan online
You will need to contact HMRC.
They will ask you:
- if you can pay in full
- how much you can repay each month
- if there are other taxes you need to pay
- how much money you earn
- how much you usually spend each month
- what savings or investments you have
If you have savings or assets, HMRC will expect you to use these to reduce your debt as much as possible.
If you’ve received independent debt advice, for example from Citizens Advice, you may have a ‘Standard Financial Statement’. HMRC will accept this as evidence of what you earn and spend each month.
Payment plan length
There is no time limit on how long a payment plan can last. It will depend on how much you owe and what you can afford to pay each month.
If anything changes that could affect your plan you should inform HMRC as the payment plan can be made longer or shorter.
