HMRC offers flexible options for tax payments ahead of January deadline
As the festive season approaches, HM Revenue and Customs (HMRC) is reminding taxpayers of the options available to manage their tax bills.
For those filing a Self Assessment tax return, HMRC’s Time to Pay payment plan offers a chance to spread the cost in manageable instalments.
Over 15,000 taxpayers have already taken advantage of the scheme for the 2023-24 tax year. The payment plan is designed for individuals unable to pay their tax bill in full and is accessible online for those owing less than £30,000. Applicants can set up an agreement directly on the HMRC website without needing to contact the department. For debts exceeding £30,000, taxpayers will need to speak with HMRC directly to arrange a payment schedule.
To use the Time to Pay service, taxpayers must first complete their Self Assessment tax return. The deadline to file returns and pay any tax owed is 31 January 2025. To help taxpayers avoid last-minute stress, HMRC encourages early filing and preparation. Support resources, including step-by-step guides and videos, are available on GOV.UK and YouTube.
For payments, HMRC offers several secure options, including the free HMRC app and online services. Taxpayers are reminded to budget carefully to ensure timely instalments, as missed payments incur penalties and interest.
Those who sell goods or provide services through online platforms are advised to check whether their activity qualifies as a trade requiring a tax return. Guidance is available on GOV.UK.
For individuals under Simple Assessment, who have received a letter about unpaid Income Tax for the 2023-24 tax year, the payment deadline is also 31 January 2025. Unlike Self Assessment customers, Simple Assessment recipients do not need to register or file a return.
Both Self Assessment and Simple Assessment bills can be paid in full or in smaller instalments, provided the balance is cleared before the deadline. Payments can be made online or via the HMRC app.
With the deadline less than two months away, HMRC advises taxpayers to act early to avoid unnecessary complications.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We’re here to help customers get their tax right and if you are worried about how to pay your Self Assessment bill, help and support is available. Customers can set up their online payment plan to suit their own financial circumstances and can spread those payments across a maximum of 12 months. It is a valuable option for someone needing extra flexibility in meeting their tax obligations.”
