Contact HMRC to set up a TIME TO PAY (TTP) arrangement for your next self-assessment tax payment
To support individuals who are struggling to pay their tax, HMRC is encouraging the use of its online tool to set up an instalment plan for self-assessment payments. The tool has can deal with payments due of up to £30,000. A self-serve process means that provided you meet all the relevant criteria, a short-term TTP arrangement can be put in place without having to discuss it with HMRC and without having to provide details of current income and expenditure.
Agents are not allowed to set up the required direct debit in the names of their customers. Only you can make a TTP arrangement with HMRC. You have 60 days before or after a payment deadline to set up a TTP.
- If you have a personal tax account (or want to register for one) and your tax return is filed with HMRC, you can apply online using GOV.UK to set up a direct debit and pay any tax that is owed over a period of up to 12 months
- You should wait 3 full days after your tax return has been filed to set up an online TTP arrangement
- The online tool will ask if you want to make a lump sum payment upfront, the amount of your desired instalments, and over what time period
You need to meet the following requirements to set up your own time to pay arrangement:
- Have no:
- other HMRC payment plans set up
- other tax debts
- outstanding tax returns
- The total debt needs to be under £30,000
- The payment plan needs to be set up:
- no later than 60 days after the due date of debt, this will be the 1 April for a 31 January payment date or 29 September for a 31 July payment date
- no earlier than 60 days before the due date of debt, this will be the 3 December for a 31 January payment date or 2 June for a 31 July payment date
- Have no:
Interest will be charged
Interest accrues from the due date on TTP arrangements for all tax outstanding at the HMRC late payment interest rate until cleared.
Late payment penalties may apply
After 30 days (3 March) there is an automatic 5% late payment penalty due on the balance of any unpaid tax. The 5% penalty is applied again to the balance of any tax that remains unpaid after 6 months (31 July) and at 12 months (31 January).
Penalties are suspended if you have a payment arrangement in place before the dates the penalties are applied. However, if you break your TTP agreement you will become liable for the penalties.
If you need longer than 12 months, your debt is over £30,000 or you can’t use the online service
You can set up a TTP arrangement by calling:
- the Self Assessment Payment Helpline on 0300 200 3822 or
- the coronavirus helpline 0800 024 1222.
Both are open Monday to Friday from 8 am to 4 pm. Closed on bank holidays and weekends.
Calling first thing in the morning I find has shorter waiting times. Lines will always be super busy around the payment deadlines.
Remember you can set up a TTP within 60 days after a payment deadline has passed. Do not get too stressed if you do not have a plan in place before your payment is due.
You will need:
- to quote your 10-digit unique taxpayers reference (UTR) or National Insurance number during the call.
- your bank details to make the payment from
- to make a cuppa and to be prepared for an hour-long wait on hold
Taking action may be stressful when contacting HMRC, but remember, they are there to help you pay your taxes. Contacting them is better than making no contact at all. Usually, I find the nicer I am to them, the more willing they are to help.