If you’re struggling to pay a tax bill in full, it’s important to know that HMRC expects you to take action rather than to ignore it. In many cases, they may allow and support you in setting up a Time to Pay arrangement. This lets you spread the cost over monthly instalments instead of paying everything upfront.

Setting up a plan –

You may be able to set up a payment plan if:

• Your tax bill isn’t already too overdue.
• You can pay the balance off within a reasonable timeframe.
• You have filled in all required returns.

What HMRC will consider –

If you can’t set this up online and need to contact HMRC directly, they will usually ask for details about:

• Your income and regular spending.
• How much you can realistically afford to pay each month.
• Any savings or assets.
• Whether you have other tax debts outstanding.

Why acting early matters –

If you miss a payment deadline and don’t speak to HMRC, the following may occur:

• Interest and Penalties may apply.
• HMRC can take enforcement action.
• Payment plans can become harder to get accepted.

If you’re unsure whether a payment plan is right for you, or would like some support dealing with HMRC, we can guide you through the process and help you avoid any unnecessary stress. Get in touch today for advice tailored to your situation.