01278 228004

Chamber News

You are here: 

Self Assessment Customers to Benefit from Enhanced Payment Plans

Friday 2nd October, 2020

Self Assessment customers can apply online for additional support to help spread the cost of their tax bill into monthly payments from today (1 October), without the need to call HM Revenue and Customs (HMRC).

The online payment plan service can already be used to set up instalment arrangements for paying tax liabilities up to £10,000. From 1 October 2020, HMRC has increased the threshold to £30,000 for Self Assessment customers, to help ease any potential financial burden they may be experiencing due to the coronavirus pandemic.

The increased self-serve Time to Pay limit of £30,000 follows the Chancellor of the Exchequer’s announcement on 24 September to increase support for businesses and individuals through the uncertain months ahead.

As part of his speech, the Chancellor announced that Self Assessment customers could pay their deferred payment on account bill from July 2020, any outstanding tax owed for 2019 to 2020 and their first payment on account bill for this current tax year in monthly instalments, up to 12 months, via this self-serve tool. Customers who need longer than 12 months to settle their tax liabilities are invited to contact HMRC in the usual way.

Financial Secretary to the Treasury, Jesse Norman, said:

“We are supporting jobs by giving more breathing space to up to 11 million Self Assessment taxpayers when managing their tax affairs.

“Enhancing Time to Pay should ease the financial burdens and protect the livelihoods of these taxpayers, as they navigate the months ahead.”

More than 11 million customers complete a Self Assessment tax return each year. Once they have completed their tax return for the 2019 to 2020 tax year, those who have payments to make may have the option of using the online self-serve Time to Pay facility 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.

HMRC estimates around 95% of Self Assessment customers who are due to make payments on 31 January 2021 could qualify to implement a Time to Pay arrangement using the self-serve Time to Pay facility online, without needing to speak to an HMRC adviser.

Customers who wish to set up their own self-serve Time to Pay arrangements must meet the following requirements:

  • they need to have no:
    • outstanding tax returns
    • other tax debts
    • other HMRC payment plans set up
  • the debt needs to be between £32 and £30,000 
  • the payment plan needs to be set up no later than 60 days after the due date of a debt 

Customers using self-serve Time to Pay will be required to pay any interest on the tax owed. Interest will be applied to any outstanding balance from 1 February 2021.

Be aware of scams claiming to be from HMRC, offering to help you set up payment plans to pay any tax owed. These scams are trying to harvest your details to steal your money. Check GOV.UK for information on how to recognise genuine HMRC contact. Self Assessment customers can set up their own online payment plan to help spread the cost of their tax bill by visiting https://www.gov.uk/pay-self-assessment-tax-bill/pay-in-instalments.

Latest news

Gravity launches design competition for Sedgemoor students: Architect and TV presenter George Clarke is supporting the competition
April 22, 2021

Gravity is teaming up with two educational charities to launch a design competition that aims to encourage local youngsters to get involved with the project to create the UK’s first smart campus and community. Gravity, which is based on the site of the former Royal Ordnance Factory (ROF) between Puriton and Woolavington, is launching the…

Read More
Bridgwater United Community Sports Trust (BUCST) is delighted to become the latest member of the Bridgwater Chamber of Commerce
April 22, 2021

Bridgwater United Community Sports Trust aims to provide all members of the local community with the opportunity to access quality sport, physical activity, and wellbeing provision whatever their age, gender or ethnicity. To help the Trust achieve our aims, we believe it was vitally important to align ourselves with organisations who share our values and…

Read More
The Old Vicarage Hotel is Top Dog
April 21, 2021

Did you know that April is #NationalPetMonth #NPM21, celebrating and raising awareness of responsible pet ownership. The theme this year is Pets and People: caring for each other.   As a result of caring for all their doggie guests (and their owners) the Old Vicarage Hotel in Bridgwater has just won the Gold Award for…

Read More
Reopening non-essential retail
April 9, 2021

Sedgemoor District Council is working with shop-keepers, traders and larger national chain stores to prepare for the re-opening of High Streets and retail centres, following the Government announcement that non-essential shops can open from Monday, April 12th.   Pavement stencilling has been refreshed in Bridgwater, Highbridge, Burnham, Wedmore and Cheddar to remind people to keep their…

Read More