Background
Further to last week’s Muras Matters topic on the Government’s latest coronavirus support packages we have received some enquiries for additional information with regard to the deferral of self-assessment tax payments.
H M Revenue & Customs (HMRC) have now issued more information on the ‘Time to Pay’ service the Chancellor announced which we set out below.
Detail
It was previously announced that self-assessment income tax payers, with up to £30,000 of tax liabilities due, can benefit from an additional 12 month payment extension under the HMRC time to pay facility. This means that payments on account deferred from July 2020, and those due in January 2021, can be deferred until up to January 2022.
HMRC have now confirmed that such individuals can apply online to spread their tax liability over monthly instalments without the need to telephone HMRC.
In order to use the online self-serve ‘Time to Pay’ service tax payers must first have completed their income tax return for the 2019/20 tax year. It will then be possible through the GOV.UK website to set up a direct debit to pay any tax owed on a monthly basis, up to a maximum of 12 monthly instalments.
In order to use the ‘Time to Pay’ serve, self-assessment tax payers must satisfy the following requirements:
- No outstanding tax returns
- No other tax debts
- Have no other HMRC payment scheme set up
- Have a self-assessment tax bill of between £32 and £30,000
- It is no more than 60 days since the tax was due for payment.
Any tax payer who does not satisfy these requirements may still qualify for the Time to Pay scheme, but they will need to call HMRC in order to discuss setting up any such arrangement.
If a Time to Pay arrangement is set up then interest will be still have to be paid on any tax paid late. Interest will be applied to any outstanding balance from 1 February 2021.
Our Current working arrangement – We remain ‘Open for business’
Our staff have returned to office based working on a rota basis, each attending two days a week, whilst continuing to work from home at other times. They can still be contacted in the usual way either via email or by calling the office number where reception will divert your call to the appropriate staff member.
If you would like more information about Time to Pay arrangements or getting your tax return completed sooner to give you time to plan your payment please speak to your usual contact at the firm.
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