Taxpayers that cannot pay their tax bill on time can set up a time to pay arrangement with HMRC. ICAEW’s Tax Faculty highlights the circumstances when this can be done online for self assessment and PAYE.

Setting up a time to pay arrangement online for self assessment (SA) has been possible for several years. The limit increased from £10,000 to £30,000 in October 2020. The ability to create an online time to pay arrangement was extended to PAYE in December 2022.

The criteria for using the online services are: 

Maximum liability  £30,000 £15,000
Deadline for using the online service Within 60 days of the payment deadline Within 35 days of the payment deadline
Deadline to avoid late payment penalties Within 30 days of the payment deadline n/a
Timescale for paying off the debt Within the next 12 months Within the next six months
Tax return filing Latest SA return must be filed Employer PAYE and construction industry scheme returns must have been filed
Other liabilities Must have no other payment plans or debts with HMRC Must have no other payment plans or debts with HMRC

If the taxpayer cannot meet these conditions, they will need to speak to HMRC or use its webchat. Agents cannot use the online service on behalf of their clients. 

Interest will be charged on payments made after the deadline. 

See HMRC’s guidance If you cannot pay your tax bill on time which explains the above in more detail. It also explains what to do and how to contact HMRC if the conditions for applying online are not met.

ICAEW’s Tax Faculty is recognised internationally as a leading authority and source of expertise on taxation. The faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.


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