Tax due? Set up time to pay online

With just over a week to go until the filing deadline for 2019/20 tax returns, HMRC has reminded taxpayers that using its time-to-pay system is an option. What’s different about it this year?

HMRC has repeatedly resisted calls to move the filing deadline for 2019/20 tax returns, despite the coronavirus pandemic. Instead, it has indicated that taxpayers who are struggling to ascertain actual figures should use estimates wherever possible, rather than filing and paying late. It has also ramped up its time-to-pay system this year.

A taxpayer who owes less than £30,000 can now set up a time-to-pay arrangement onlineby logging into their Personal Tax Account, so there is no need to speak to anyone over the phone and answer potentially intrusive questions over the ability to pay. Previously, this was limited to £10,000. Additionally, if an individual deferred their payment on account due on 31 July 2020, this can also be included in the arrangement as well as the balancing payment. However, there are some further conditions. In order to use the online self-service the taxpayer:

  • must be up to date with their tax affairs
  • must not have any other payment plan or debts with HMRC; and
  • must set up the arrangement within 60 days of the payment deadline (i.e. from 31 January 2021).

It is also possible to set up an informal recurring payment to credit future liabilities. Any shortfall will be payable in the usual way.

What to do next

For further information on this and other topics contact Tony on 07974-418819 or email at or through the contact page of the website

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