Muras Matters: Set Up A Time To Pay Arrangement Online


Taxpayers that cannot pay their tax bill on time can set up a time to pay arrangement with HM Revenue & Customs (HMRC). The ability to set up a time to pay arrangement online  for self assessment has been available for a number of years and avoids the need to call HMRC.

The limits for being able to use the online time to pay arrangement have been increased and the facility was also extended to employers’ PAYE in December 2022.


Time to pay arrangements can be set up online for taxpayers with a self assessment liability of up to £30,000, an increase from the previous maximum liability of £10,000. The arrangement can provide for the debt to be repaid within the next 12 months. The application must be made within 60 days of the payment due date, and within 30 days to avoid incurring late payment penalties. For taxpayers with liabilities outstanding from 31 January 2023 for the 2021/22 tax year this would require the arrangement being in place by 2 March 2023 in order to avoid the 5% late payment penalty.

In addition the taxpayer must have already filed their latest self assessment tax return to apply for a time to pay arrangement.

For employers’ PAYE the maximum liability to use the online service is £15,000 and the arrangement must be applied for within 35 days of the payment deadline. Under a time to pay arrangement the liability can be spread over a maximum of 6 months. The employer will need to ensure they have filed all their employer PAYE and construction industry scheme returns in order to be able to apply for the arrangement.

The other qualifying condition for both self assessment and employers’ PAYE liabilities is that tax payer must not have any other payment plans or debts with HMRC.

Should a taxpayer not be able to satisfy the above conditions then they would need to speak directly with HMRC or use its webchat facility. Agents are not able to use the online service on behalf of their clients.

Interest is still chargeable on payments made after the normal payment deadline.

Further detail can be found in HMRC’s guidance – If you cannot pay your tax bill on time. It also explains what to do and how to contact HMRC if the conditions for applying online are not met.

If you would like more information on time to pay arrangements please speak to out Tax Director, Jenny Marks.

To see our other news items please visit our Muras Baker Jones – Blog.