From 1 October 2020 HM Revenue and Customs (HMRC) has increased the threshold for paying tax liabilities to £30,000 for Self Assessment customers to help ease any potential financial burden they may be experiencing due to the coronavirus (COVID-19) pandemic.
The online payment plan service can already be used to set up instalment arrangements for paying tax liabilities up to £10,000.
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.
Self Assessment customers can set up their own online payment plan to help spread the cost of their tax bill.
Source: Business Wales
Posted on: Friday 9th October 2020