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Since the pandemic hit the country, various policies have been implemented to ease the financial pressure on individuals and businesses. Namely the Coronavirus Job Retention Scheme (CJRS), the Self-Employment grants and the Eat Out to Help Out scheme.
As we stand now, with our economy in a state of recession, the job market in a perilous state and household incomes stretched, the Government has had to continue to be creative.
The Chancellor of the Exchequer announced on 24th September an online payment plan service to set up instalment arrangements for paying tax liabilities of up to £30,000 for Self-Assessment taxpayers. This was swiftly published in a press release by HMRC on 1st October which aims to help ease financial burdens that many may be experiencing during these unclear times.
This measure allows for the deferral of a Self-Assessment taxpayers:
Once the 2019/20 return is filed, it will be possible to arrange a Time to Pay up to 12 months in length via the self-serve tool without having to call HMRC (unless a longer period is required).
It is HMRC’s estimation that 95% of Self-Assessment taxpayers could qualify for a 12-month Time to Pay although it should be noted that the following requirements must be met in order to qualify:
Interest will be applied to any outstanding balance from 1 February 2021 i.e. on the Time to Pay arrangement.
If you are unclear with what you may be untitled to or need guidance in arranging the payment or compliance of your tax affairs, please get in touch with a member of team at ETC Tax.