OCL Accountancy: Extended time and new limit for Time to Pay of self assessment taxes
As announced by the Chancellor, Self Assessment taxpayers can now apply online to spread the cost of their tax bill into monthly payments without the need to call HMRC.
The online self-serve ‘Time to Pay’ service, has been increased to £30,000 for Self Assessment taxpayers, to help ease any potential financial burden they may be experiencing due to the coronavirus pandemic.
Once you’ve completed your tax return for the 2019-20 tax year, you can use the online self-serve ‘Time to Pay’ service through GOV.UK to set up a direct debit and pay any tax that is owed in monthly instalments, up to a 12-month period.
If you wish to set up your own self-serve ‘Time to Pay’, you must meet the following requirements: • no outstanding tax returns • no other tax debts • no other HMRC payments set up • your Self Assessment tax bill is between £32 and £30,000 • it is no more than 60 days since the tax was due for payment.
If you do not meet these requirements, you might still qualify for Time to Pay, but you will need to call HMRC to set this up.
If you set up a ‘Time to Pay’ arrangement, you will have to pay interest on the tax paid late. Interest will be applied to any outstanding balance from 1 February 2021.
For tax saving tips contact us – call Marie Sheldrake, Tom Hulett or Mike Wilcox on 01225 445507