31st JANUARY 2021 (which is a Sunday)!

The top point to take from this email is there is no automatic deferment of tax payments to be made by 31st January (this Sunday), unlike the payments on account due 31st July 2020.

If you cannot settle you tax liability, which includes the deferred payment on account, then you have apply for a time to pay arrangement.

HMRC has reminded taxpayers that using its time-to-pay system is an option for those struggling to find funds to pay in full on or before 31st January. With less than a week to file tax returns and make payment of any take liability due to HMRC, anyone who is going to struggle to pay, we urge you all to contact HMRC, arrange a payment plan and then inform us of your payment plans, should you need to use this facility to spread the cost of payment!

Despite the coronavirus pandemic, HMRC has refrained from acting on calls to move the tax return filing deadline for 2019/20 tax returns. HMRC has indicated that taxpayers who are struggling to establish actual figures should use estimates wherever possible rather than filing and paying late. It has also ramped up its time-to-pay system this year.

A taxpayer who owes less than £30,000 can now set up a time-to-pay arrangement online by accessing their Personal Tax Account, there is no need to speak to anyone over the phone. Previously, this was limited to £10,000. Additionally, if an individual deferred their payment on account due on 31st July 2020, this can also be included in the arrangement as well as the balancing payment. This time-to-pay arrangement allows the tax to be paid in 12 equal, monthly instalments by direct debit.

There are some further conditions. In order to use the online self-service, the taxpayer:

  1. must be up to date with their tax affairs;
  2. must not have any other payment plan or debts with HMRC; and
  3. must set up the arrangement within 60 days of the payment deadline; meaning from 31st January 2021.

It is also possible to set up an informal recurring payment to credit future liabilities. Any shortfall will be payable in the usual way.

The link below can help you setup the time-to-pay arrangement:

HMRC Time to pay arrangement