Self-employed given ‘more breathing space’ to pay self-assessment

The self-employed can now apply online for additional support to help spread the cost of their tax bill into monthly payments, without the need to call HMRC.

With many contractors suffering financially due to the pandemic, the government has said it’s providing this extra help in order to increase its support for businesses and individuals through the uncertain months ahead.

The Time to Pay online payment plan service could already be used to set up instalment arrangements for paying tax liabilities up to £10,000. Now, HMRC has increased the threshold to £30,000 for self-assessment customers, to help ease any potential financial burden they may be experiencing due to the Coronavirus pandemic.

Financial Secretary to the Treasury, Jesse Norman, said, “We are supporting jobs by giving more breathing space to up to 11 million self-assessment taxpayers when managing their tax affairs.

“Enhancing Time to Pay should ease the financial burdens and protect the livelihoods of these taxpayers, as they navigate the months ahead.”

Those who wish to set up their own self-serve Time to Pay arrangements must meet the following requirements:

• They need to have no: outstanding tax returns, other tax debts or other HMRC payment plans set up.
• The debt needs to be between £32 and £30,000
• The payment plan needs to be set up no later than 60 days after the due date of a debt.

Customers using self-serve Time to Pay will be required to pay any interest on the tax owed. Interest will be applied to any outstanding balance from 1^st February 2021.

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com