Thousands of self-employed workers have taken advantage of the Government’s extended Time to Pay scheme ahead of the 31 January Self Assessment deadline, a new report has revealed.
HM Revenue & Customs (HMRC) said around 25,000 taxpayers have now registered to spread tax liabilities worth more than £69 million.
The report comes after the regulator increased the threshold for self-serve Time to Pay arrangements from £10,000 to £30,000 to help taxpayers affected by Covid-19.
Taxpayers unable to pay their tax bill immediately can set up a payment plan to spread the cost of their liabilities, providing they owe less than the £30,000 threshold, they do not have any other payment plans or debts with HMRC, their tax returns are up to date, and the plan is set up less than 60 days after the payment deadline.
To use the scheme, taxpayers must first complete and file their 2019/20 tax return and calculate how much they owe.
Commenting on the scheme, Karl Khan, HMRC’s Interim Director General for Customer Services, said: “We know the past year has been tough for many businesses and self-employed people, which is why we’re helping them spread the cost of their tax bill into monthly payments.
“Self Assessment customers can use the self-serve Time to Pay facility for amounts up to £30,000 with almost 25,000 customers already benefiting from the service.”
For help and advice with related matters, please get in touch with our personal tax team today.