Taxpayers should contact HMRC over worries about paying tax bills

The Association of Taxation Technicians (ATT) is urging individuals and businesses who are worried they will not be able to pay their tax on time to get in touch with HMRC to see if they are eligible for a Time to Pay arrangement.

With less than three weeks left until the Self-Assessment tax return deadline on 31 January 2023¹, Time to Pay arrangements can provide a lifeline for those struggling to meet their tax bills and help them avoid late payment penalties. Issued via HMRC’s Business Support Service (BSS), they allow tax bills to be spread across a longer period using a payment plan.

Some Self-Assessment taxpayers will be able to apply quickly and easily online², where a decision can be made without the need to speak to a HMRC representative over the phone. To be eligible to do so, they must meet the following conditions:

• Have filed all necessary tax returns

• Owe £30,000 or less

• Are applying within 60 days of the payment deadline

• Plan to pay off any debt within the next 12 months

• Do not have any other payment plans or debts with HMRC

Those who owe more than £30,000 must apply by phone³.

Senga Prior, chair of ATT’s Technical Steering Group, said:

“The rising costs of mortgage payments, rent, energy bills and food have put an enormous financial strain on households up and down the country, so it’s more important than ever for anyone who is aware that they will not be able to pay their tax on time to contact HMRC as soon as possible.

“Time to Pay arrangements can provide extra time to pay without incurring late payment penalties, although interest will still be charged on any overdue amounts at HMRC’s interest rate, currently six per cent per annum.

“Although the online service is only available to Self-Assessment taxpayers, any businesses faced with an unexpected event which causes unforeseen cash flow issues can also call HMRC to ask for help with paying their taxes.

“Anyone who applies should be aware that HMRC is not obliged to agree Time to Pay arrangements, which is another reason why anyone who knows they will struggle to pay their tax should get in touch with HMRC as soon as possible.”

Notes for editors

1. While 31 January is the deadline to pay tax due under Self-Assessment for the 2021-22 tax year, some individuals may also need to make a payment on account for the 2022-23 tax year by the same date.

2. Those that fulfil the qualifying conditions can apply for a Time to Pay arrangement through the Government website, using their Government Gateway ID and password.

3. Applicants can also contact HMRC by phone on 0300 200 3835.