Setting up a payment plan with HMRC

The 31st of January is a key date for those of us who are registered for self-assessment. There are three deadlines:

1. The closing date to file your 2022-23 tax return without incurring an initial £100 late filing penalty.
2. The date by which any balance of tax, NIC, or student loan payback needs to be made for 2022-23.
3. Due date for making the first payment on account for 2023-24.

What to do if you cannot afford to make these payments

HMRC will allow taxpayers who cannot meet these tax payments by 31^st of January, to spread the cost by applying for a formal HMRC payment plan.

The instructions posted on the GOV.uk website are reproduced below:

Setting up a payment plan

To set up a payment plan you will need:

• the relevant reference number for the tax you cannot pay, such as your unique tax reference number;
• your UK bank account details – you must be authorised to set up a Direct Debit; and
• details of any previous payments you have missed.

You may be able to set up a payment plan online, depending on which type of tax you owe and how much you owe.

If you owe tax from self-assessment

You can set up a self-assessment payment plan online if you:

• have filed your latest tax return;
• owe £30,000 or less;
• are within 60 days of the payment deadline; and
• do not have any other payment plans or debts with HMRC.

HMRC will ask you about your income and spending when you set up your plan.