Self-assessment payment plans, and the £30,000 limit

16 Mar 2021

HMRC can agree time to pay arrangements with businesses and individuals that cannot pay their tax on time because of COVID-19.

Individuals who cannot pay their Self-Assessment liability can set up a Time to Pay Arrangement online, provided they:

  • owe £30,000 or less
  • do not have any other payment plans or debts with HMRC
  • are up to date with their tax returns
  • are within 60 days of the payment deadline

When using the online service, HMRC have told us that if the payment plan extends into and beyond July 2021, the amount of the July 2021 Self-Assessment Payment on Account will be taken into consideration when calculating the £30,000 threshold. HMRC are looking to update their guidance to make this clearer. If the £30,000 threshold is exceeded, the online service cannot be used, but it may still be possible to agree a time to pay arrangement by phoning HMRC’s Self-Assessment Payment Helpline on 0300 200 3822.