With the holidays behind us and the new year now underway, it’s the perfect time to get your finances in order. If you’re one of the many who file a Self Assessment tax return, you might already be thinking about the looming 31 January 2025 tax payment deadline.
If you’re concerned about how you’ll manage the payment, you’ll be pleased to know that HM Revenue & Customs (HMRC) offers a Time to Pay service, which could help you spread the cost of your tax bill into more manageable monthly payments.
What is Time to Pay?
Time to Pay is a service provided by HMRC for taxpayers who can’t pay their Self Assessment bill in full by the deadline. By setting up a payment plan, you can spread the cost over monthly instalments, making things a little easier to handle financially. The good news? As long as you stick to the agreed plan, you’ll avoid further penalties.
Key Things to Know
- Eligibility:
If your tax bill is under £30,000, you can set up a payment plan online quickly and easily. For bills over £30,000, you’ll need to speak with HMRC directly to arrange a plan. - File First, Plan Later:
Before you can arrange a Time to Pay plan, you need to file your tax return for the 2023–24 tax year. The deadline for both filing and payment is 31 January 2025. - Payment Terms:
The plan allows you to spread payments over up to 12 months. However, it’s important to budget carefully to ensure you meet the monthly payments. Missing a payment could result in interest charges and penalties.
Why Consider Time to Pay?
Time to Pay can be a real lifeline if you’re worried about managing your tax bill in one go. HMRC reports that over 15,000 taxpayers have already set up plans for the current tax year—proof that you’re not alone in seeking flexible payment options.
Planning ahead and exploring solutions like this can help you reduce stress and stay in control of your finances.
We’re Here to Help
If you’d like assistance with filing your tax return or setting up a payment arrangement with HMRC, don’t hesitate to get in touch. We’re always here to provide friendly, professional advice to make the process as smooth as possible for you.
Let’s work together to take the stress out of tax season. Contact us today!