Thousands of people using payment plan to spread tax bill

With the self-assessment deadline date approaching, nearly 44,800 people have arranged a payment plan to spread out their tax bill.

HMRC data shows that more than 8.3 million people have already filed their tax returns for the 2022 to 2023 tax year, and those who are yet to complete theirs are being reminded that they need to do so before the 31^st of January, otherwise, they could face penalties.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said, “We want to help Self Assessment customers meet their obligations and there is no time like the present to choose the right payment option for you.

“Whether you choose to pay in instalments, via the HMRC app or using online banking, search ‘pay your Self Assessment tax bill’ on GOV.UK for a full list of options.”

For reference, the penalties for a late tax return are as follows:

• an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
• after 3 months, additional daily penalties of £10 per day, up to a maximum of £900
• after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
• after 12 months, another 5% or £300 charge, whichever is greater

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