Paying a tax bill in full by the January deadline can be challenging, particularly for those with irregular income or rising living costs. While the deadline remains fixed, there are circumstances where HM Revenue & Customs may allow payments to be spread over time.
Using Time to Pay arrangements
HMRC’s Time to Pay service allows eligible taxpayers to spread their Self Assessment tax bill into manageable monthly instalments. This option is generally available once a tax return has been filed and is aimed at those who cannot pay the full amount by the deadline. For balances below a certain threshold, payment plans can often be set up online without direct contact with HMRC, providing flexibility while keeping accounts up to date. Acting early is important, as arrangements cannot usually be agreed after enforcement action has begun.
Self Assessment and Simple Assessment considerations
Both Self Assessment and Simple Assessment taxpayers may be able to pay in installments, provided the balance is cleared by the relevant deadline. Simple Assessment applies to certain taxpayers whose outstanding income tax cannot be collected through PAYE, and payment timescales may vary depending on when the assessment is issued. Understanding which system applies is key to avoiding missed payments or confusion. In some cases, professional guidance from advisers, including accountants Bath like //chippendaleandclark.com/accountants-near-me/bath/, can help clarify obligations and available options.
Overall, getting more time to pay a tax bill may be possible, but it requires prompt action. Understanding the options available can help taxpayers stay compliant while easing short-term financial pressure.
