Setting up a payment plan with HMRC

tiemadmin • 9 January 2024

The 31st of January is a key date for those of us who are registered for self-assessment. There are three deadlines:

  1. The closing date to file your 2022-23 tax return without incurring an initial £100 late filing penalty.
  2. The date by which any balance of tax, NIC, or student loan payback needs to be made for 2022-23.
  3. Due date for making the first payment on account for 2023-24.

What to do if you cannot afford to make these payments

HMRC will allow taxpayers who cannot meet these tax payments by 31 st of January, to spread the cost by applying for a formal HMRC payment plan.

The instructions posted on the GOV.uk website are reproduced below:

Setting up a payment plan

To set up a payment plan you will need:

  • the relevant reference number for the tax you cannot pay, such as your unique tax reference number;
  • your UK bank account details – you must be authorised to set up a Direct Debit; and
  • details of any previous payments you have missed.

You may be able to set up a payment plan online, depending on which type of tax you owe and how much you owe.

If you owe tax from self-assessment

You can set up a self-assessment payment plan online if you:

  • have filed your latest tax return;
  • owe £30,000 or less;
  • are within 60 days of the payment deadline; and
  • do not have any other payment plans or debts with HMRC.

HMRC will ask you about your income and spending when you set up your plan.

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