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Setting up a payment plan with HMRC

9 January 2024

The 31st of January holds three vital deadlines for self-assessment individuals: filing 2022-23 tax returns, settling 2022-23 tax balances, and making the first 2023-24 payment on account. If unable to pay, taxpayers can request an HMRC payment plan online.

For individuals registered for self-assessment, the 31st of January marks three crucial payment deadlines:

  • Firstly, it’s the closing date to file your 2022-23 tax return without incurring an initial £100 late filing penalty.
  • Secondly, it’s the date by which any balance of tax, NIC, or student loan settlement needs to be made for 2022-23.
  • Lastly, it’s the due date for making the first payment on account for 2023-24.


What to do if you cannot afford to make these settlements

HMRC permits taxpayers unable to meet tax settlements by January 31 to spread the cost by applying for a formal HMRC payment plan.

The instructions posted on the GOV.uk website are reproduced below.


Setting up a payment plan

To set up a payment plan you will need:

  • the relevant reference number for the tax you cannot pay, such as your unique tax reference number;
  • your UK bank account details – you must be authorised to set up a Direct Debit; and
  • details of any previous settlements you have missed.

You may be able to set up a payment plan online, however this depends on which type of tax you owe and how much you owe.


If you owe tax from self-assessment

You can set up a self-assessment payment plan online if you:

  • have filed your latest tax return;
  • owe £30,000 or less;
  • are within 60 days of the settlement deadline; and
  • do not have any other payment plans or debts with HMRC.

HMRC will ask you about your income and spending when you set up your plan.

Source: Other Tue, 09 Jan 2024 00:00:00 +0100

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