Self-assessment Time to Pay arrangements proving increasingly popular

The unfortunate reality of the last 12 months of the COVID-19 pandemic is that many self-employed sole traders, limited company directors and freelancers were forced to defer their Payments on Account for July 2020, using that tax money to simply survive.

Consequently, many have more money to find than usual to meet their self-assessment obligations this month.

Approximately £69 million worth of self-assessment tax bills have already been spread out using the Time to Pay debt management scheme.

Karl Khan, Interim Director General for Customers Services, HMRC, said: “We know the past year has been tough for many businesses and self-employed people, which is why we’re helping them spread the cost of their tax bill into monthly payments.”

Those who fail to submit their 2019/20 self-assessment tax return online by 31st January 2021 cannot avail themselves of the Time to Pay service and are unable to spread their repayments over the next 12 months.

Furthermore, they will receive an immediate late-filing penalty of £100 and their accounts will accrue additional fines and interest charges if left unpaid for several months.

With just over a week left to prepare and file your 2019/20 self-assessment tax return online, time is running out to beat the deadline and qualify for HMRC’s Time to Pay debt management scheme.

Need more help?

We love working with self-employed professionals and independent business owners and if you are not receiving the service and support you deserve from your accountant then please talk to us on 01233 771926 or use our online enquiry form. We offer free initial consultations, advice and support over the phone or via video meeting if you have any concerns about face-to-face meetings.

Date published 22 Jan 2021 | Last updated 22 Jan 2021