Self-assessment ‘time to pay’ threshold raised to £30,000

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HMRC has made it easier for self-assessment taxpayers to pay the tax they owe incrementally on a monthly basis, by extending the threshold for ‘time to pay’ applications, as part of efforts to ease financial stresses caused by the pandemic.

“The increased £30,000 threshold follows the Chancellor of the Exchequer’s announcement on 24 September to increase support for businesses and individuals through the uncertain months ahead.
As part of his speech, the Chancellor announced that self-assessment taxpayers could pay their deferred payment on account bill from July 2020, any outstanding tax owed for 2019/20 and their first payment on account bill for this current tax year in monthly instalments, rather than as two payment in January and July.”

HMRC estimates that up to 95% of people due to make a tax payment by 31st January 2021 could use the online time to pay arrangement and make monthly instalments, which should help with any cashflow worries.
A word of warning though, don’t leave things to the last minute! Get your tax affairs in order and plan with help from your accountant! 😊

Are you planning to use the time to pay service?
#selfassessment #timetopay #taxreturns

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