Making a Time to Pay Arrangement

Businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service.

These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities. Agreements reached with HMRC allow businesses and individuals to pay off their debt by instalments over a period of time.

HMRC will usually only offer taxpayers the option of extra time to pay if they think they genuinely cannot pay in full now but will be able to pay in the future. If HMRC does not think that more time will help, then they can require immediate payment of a tax bill and start enforcement action if payment is not forthcoming.

An online payment plan for Self-Assessment tax bills can be used to set up instalment arrangements for paying tax liabilities up to £30,000. Taxpayers that qualify for a Time to Pay arrangement using the self-serve Time to Pay facility online can do so without speaking to an HMRC adviser.

Taxpayers that want to use the online option must also meet the following requirements:

• Have no outstanding tax returns

• No other tax debts

• No other HMRC payment plans set up

• Plan to pay their debt off within the next 12 months or less.

Taxpayers, with Self-Assessment tax payments that do not meet the above requirements, and businesses need to contact HMRC to request a Time To Pay arrangement. HMRC has stated that over 90% of agreed Time to Pay Arrangements are completed successfully.