Written by: Keith Tully
HMRC has confirmed that self assessment tax payers will be able to make use of ‘Time to Pay’ options in relation to liabilities worth up to £30,000 for the 2019-2020 tax year.
That position represents a trebling of the relevant threshold for Time to Pay from £10,000, with the reason for the change being the coronavirus pandemic and the enormous disruption it’s caused businesses and professionals across the country in recent months.
HMRC has said that its self assessment platforms will routinely offer users the option to spread the costs associated with their tax bills for 2019/20 across a series of instalments.
It’s intended that anyone filing their self assessment returns this year will be able to request Time to Pay options entirely through HMRC’s online systems as long as they don’t need to pay any more than £30,000.
The chancellor of the exchequer Rishi Sunak has said he and the government are aiming to support businesses and self-employed people through what look set to be an uncertain few months for the country and the economy.
Anyone who cannot settle their bills for the tax year 2019/20 within the scope of a 12-month period has been told they should contact HMRC directly to discuss their circumstances.
Jeese Norman, financial secretary to the Treasury, said in a statement: “We are supporting jobs by giving more breathing space to up to 11 million Self Assessment taxpayers when managing their tax affairs.
“Enhancing Time to Pay should ease the financial burdens and protect the livelihoods of these taxpayers, as they navigate the months ahead.”
HMRC believes that roughly 95 per cent of all self assessment tax payers across the country should be able to apply for and agree to Time to Pay arrangements entirely online.
Criteria that must be met before someone can agree a deal to spread out their tax payments include having no outstanding tax returns, no other tax debts and no other payment plans in place with HMRC.
It is also necessary for any Time to Pay arrangement to be set up no later than 60 days after a given debt (between £32 and £30,000) becomes due.
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