Self Assessment Tax Payment Plans

HMRC announced that they will not charge late payment penalties for those who pay their Self Assessment tax due in full, or set up a payment plan, by 1 April 2022.

Once your 2020-21 tax return has been filed you will be able to contact HMRC to set up an online payment plan. HMRC are offering to spread up to £30,000 of your self-assessment bill, over and up to 12 monthly instalments.

Please note that interest will still be accruing from 1 February 2022 on any amounts outstanding, it is only the penalties that are being waived. The late payment interest rate from 4 ‌‌‌January 2022 is 2.75%.

To set up a time to pay arrangement:

  • You can make your own Time to Pay arrangement using your Government Gateway account, if you:
    • have filed your latest tax return
    • owe less than £30,000
    • are within 60 days of the payment deadline
    • plan to pay your debt off within the next 12 months or less
  • If you cannot make your own Time to Pay arrangement online call the Self Assessment helpline: 0300 200 3822 (Monday to Friday, 8am to 6pm excluding public holidays).

For help and advice on setting up Self Assessment Tax Payment Plans, please get in touch.

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