If you are unable to pay your self assessment liability this is a reminder of the option to set up a self-serve time to pay arrangement with HMRC.
The current limit for a self-serve time to pay arrangement, which was increased during the pandemic, remains at £30,000 tax due.
If you are unable to pay your 2020/21 self assessment tax liability in full by the due date, you can set up your own time to pay arrangement online if you:
- have filed your tax return for 2020/21;
- owe less than £30,000;
- are within 60 days of the payment deadline; and,
- plan to pay your debt off within the next 12 months or less.
If you owe more than £30,000, or need longer to pay, you should phone the self assessment payment helpline on 0300 200 3822 to make an arrangement.
To avoid a 5% late payment penalty, we advise you to set up the arrangement within 30 days of the due date (generally by 1 March 2022), although the service is available for 60 days following the due date.
Reduce your payments on account?
If you are due to be making payments on account but know that your 2021/22 tax bill is going to be lower than 2020/21 bill ( and this may be due to unusual trading patterns due to Covid -19) you may wish to take action to reduce your payments on account. If you would like to consider this please contact us.If you need time to pay your self assessment liability