Self-Assessment Time to Pay Plan
Posted on 17th November 2020 at 13:00
There have been some excellent changes and initiatives put in place by HMRC to help people stay in control of their finances during the coronavirus pandemic. A recent development is the increased threshold for the Time to Pay plan to £30,000.
If you’re self-employed, you can now apply online to spread the cost of your tax bill by separating it into monthly payments rather than a lump sum. The Time to Pay limit was originally £10,000 but the new £30,000 threshold makes it available to far more self-employed business owners around the UK, plus the online application makes it a smooth process by removing lengthy phone calls to HMRC.
The self-serve Time to Pay facility gives the option to set up a direct debit and pay your tax on a monthly basis for up to twelve months, which is an excellent way to maintain healthy cash flow. You should be eligible providing you have no outstanding tax returns, other tax debts or an existing HMRC payment plan in place.
Please note that the payment plan needs to be set up no later than 60 days after the due date of a debt and you will be required to pay interest on the tax owed from 1st February 2021 onwards. Whilst this will increase your tax bill a little, it simultaneously makes deadlines much easier to meet and removes the risk of a late payment fee.
If you’d like help setting this up, call our Yorkshire office on 01482 235575, our London office on 0207 885 0605, or fill in our contact form. We can also offer advice and a full management service for all of your tax needs, which aside from saving time and stress will also prove cost-effective thanks to tax-saving opportunities that our consultants will find for you.
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