Paying In Instalments – The New Rules On Self Assessment
HMRC has announced that to assist taxpayers, they can if they wish, pay their Self Assessment liabilities in instalments.
The instalments would be over a period of 12 months.
Whilst interest will be charged from February 2021 onwards entering in to an instalment arrangement should mean that late payment penalties would be avoided.
HMRC have said that an arrangement can only be made if the taxpayer does not already have a time to pay arrangement for any other liabilities or does not have any other outstanding debts with HMRC.
HMRC have said that all Tax Returns must be up to date.
HMRC have said that at the time the arrangement is requested it can only be for tax debts that are not more than 60 days after the original payment date.
If the amount outstanding is less than £30,000 then there is no need to contact HMRC. The arrangement can be agreed online via the taxpayers personal tax account.
If the amount outstanding is more than £30,000 or if any of the other stipulations mentioned above are not met then a time to pay arrangement could still be agreed but only by telephoning HMRC on 0300 200 3822.
If you require assistance with the above then please do contact us.
HMRC Guidance (Source) – https://www.gov.uk/difficulties-paying-hmrc