Time to Pay Arrangements relieves stress of debts
Did you know that HMRC can offer you Time To Pay Arrangements to help you pay any tax that you owe?
Firstly, payment arrangements with HMRC is not a new concept, however it is one that many people are still unaware of! As a result, taxpayers cause themselves unnecessary stress when HMRC Time to Pay Arrangements could help.
So what is the limit?
The maximum amount of tax owed under HMRC Time To Pay Arrangements increased from £10,000 to £30,000 back in October 2020. In addition, December 2021 included the introduction of PAYE into the arrangement scheme.
The criteria for using HMRC Time to Pay Arrangements is:
| Self Assessment | Employer’s PAYE | |
| Maximum tax owed | £30,000 | £15,000 |
| Deadline for using the online service | Within 60 days of the payment deadline | Within 35 days of the payment deadline |
| Deadline to avoid late payment penalties | Within 30 days of the payment deadline | N/A |
| Timescale for paying off the debt | Within the next 12 months | Within the next 6 months |
| Tax return filing | Latest SA return must be filed | Employer PAYE and construction industry scheme returns must have been filed |
| Other liabilities | Must have no other payment plans or debts with HMRC | Must have no other payment plans or debts with HMRC |
If you are unable to meet the criteria above, you will need to contact HMRC to discuss an alternative. HMRC will charge interest on payments made after the above deadlines.
In conclusion, the key here is to start the conversation with HMRC. As daunting as that may be, it is better to address the issue of not being able to pay and come up with a solution together, rather than receive their multiple debt chasing letters.
HMRC will also refer the debt to debt collector agencies in the hope of recovery, don’t allow yourself to fall into this category.
For further advice or guidance please get in touch!
