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November 8, 2023
More than 20,000 self-employed business owners have used the Time to Pay self-serve facility to spread the cost of their 2020/21 tax bill, it has been revealed.
The figures, published by HM Revenue & Customs (HMRC), suggest that poor cash flow remains a major issue in the wake of the coronavirus pandemic.
If your business may struggle to pay in time, here’s what you need to know.
When is the 2020/21 Self-Assessment deadline?
Self-employed business owners, property owners, and others required to report tax have until 31 January 2022 to complete their tax return for the 2020/21 financial year and pay their bill.
What if I cannot pay in full?
Business owners who cannot pay in full have been invited to set up their own Time to Pay arrangement to spread the cost of their tax bill.
The facility enables customers to create a bespoke monthly payment plan, based on how much tax is owed and the length of time needed to pay, without talking directly to HMRC.
Can I set up a Time to Pay plan?
Taxpayers can only set up a Time to Pay arrangement for the 2020/21 financial year if they:
What if I owe more than £30,000?
Should a business owe more than £30,000, or need longer to pay, they should call the Self Assessment Payment Helpline on 0300 200 3822.
Get advice today
For advice on how to arrange a Time To Pay plan with HMRC, and any other aspects of personal taxation, please contact Chris Moir, head of personal tax at RMT Accountants & Business Advisors, on 0191 256 9500 or via our contact page.