With the deadline of 31 January 2024 approaching for the payment of individual’s self assessment tax liabilities, this week’s Muras Matters offers a timely reminder that HM Revenue & Customs (HMRC) may be able to offer the option of setting up a time to pay arrangement plan for those taxpayers that may be having trouble paying their tax on time.
Time to pay arrangements can be set up online for taxpayers with a self assessment liability of up to £30,000. The arrangement can provide for the debt to be repaid within the next 12 months.
To be eligible to use the online facility the taxpayer must have filed their tax return within 60 days of the payment due date and intend to pay their debt within the following 12 months or less. Taxpayers that qualify for a Time to Pay arrangement using the self-serve Time to Pay facility online, can do so without the need to speak with a HMRC adviser.
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.
HMRC will only offer taxpayers the option of extra time to pay if they think they genuinely cannot pay in full but will be able to pay in the future. If HMRC do not think that more time will help, they can require immediate payment of a tax bill and start enforcement action if no payment is forthcoming.
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
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