21-01-2021
Online tax payment plans

New figures published by HMRC have revealed that some 25,000 taxpayers have set up an online payment plan to manage their tax liabilities spreading payments of £69 million for up to 12 monthly instalments.

This follows an increase in the limit for making an online payment plan to £30,000 (previously £10,000) that took effect from 1 October 2020. Taxpayers with outstanding tax liabilities may be eligible to receive support with their tax affairs by using this service.

The deadline for submitting your 2019-20 Self-Assessment tax returns online was 31 January 2021. Once a return has been submitted you can use the self-serve facility to set up monthly direct debits and spread the cost of your tax bill. The payment plan needs to be set up no later than 60 days after the due date of the debt.

In order to use the online payment plan you must meet the following requirements:

  • Have no outstanding tax returns
  • No other tax debts
  • No other HMRC payment plans set up.

In addition, your debt needs to be between £32 and £30,000. You can choose how much to pay straight away and how much you want to pay each month. Interest will be applied to any outstanding balance from 1 February 2021.

Taxpayers with Self-Assessment tax payments of over £30,000, or who need longer than 12 months to pay in full, can still apply to set up a time to pay arrangement by calling the Self-Assessment payment helpline or the dedicated COVID-19 helpline.

Source: HM Revenue & Customs | 19-01-2021

Back

Post a Comment

Your email address will not be published. Required fields are marked *

*

  • ABOUT US

    the accountancy practice kent logo

    The Accountancy Practice is a Kent based firm specialising in small and medium sized businesses. We provide a friendly, professional service and regard our smallest client as important as our largest.
  • Latest News

    23-02-2021
    Emerging from lockdown

    The Prime Minister ... read more

    23-02-2021
    What is overtrading?

    A reminder that ... read more

    18-02-2021
    Marriage Allowance tax break

    If you are entitled ... read more

    More news

  • CONTACT US

    The Accountancy Practice
    10 Churchill Square
    Kings Hill
    West Malling
    Kent ME 19 4YU

    01732 897929

    Fax: 01732 897939
    info@theaccountancypracticeltd.co.uk


    Facebook
    Twitter
    Linkedin
  • Why choose us

    By working more closely with you than traditional accountants, The Accountancy Practice is able to gain a deeper understanding of your individual business needs. We are then on hand to support you with day to day issues and provide ongoing financial and taxation expertise. You can think of us as your virtual Financial Director.