Paying Income Tax By Instalments

As you may well be aware Income Tax due under self-assessment is payable on or before 31 January each year.  This year the amount payable may be a significant sum because the following are payable:

  • The payment deferred from 31 July 2020 under Covid-19 relief measures (if applicable)
  • The balancing payment for 2019/20
  • The first payment on account for 2020/21


If you owe less than £30,000 in tax and are struggling to pay this by the 31 January you can request a payment plan from HMRC under what they call “Time To Pay”.  HMRC are being especially understanding of the situation and are generally approving these arrangements as a matter of course.  A direct debit arrangement is required and interest is charged at 2.6% pa.

What is even simpler is that you can do this online without having to phone HMRC (and wait in the inevitable and length phone queue) by clicking here or entering the details below into your browser 

So long as you keep to the payment plan HMRC will not charge any penalties for late payment

You will need your government gateway ID and password and you will have had to have submitted your 2019/20 self-assessment return at least 48 hours before you apply for the payment arrangement.

This page deals with tax matters
While we endeavour to use reasonable efforts to furnish accurate, complete, reliable, error-free and up-to-date information, the information on this page does not constitute advice. Your individual circumstances are important, and we recommend you always obtain specific professional advice from us or another accountant before you take any action or refrain from action.


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