What is the HMRC Time To Pay service?

Definition of HMRC Time To Pay service

Time To Pay is a service that allows businesses or individuals to agree an alternative payment plan with HMRC if they are having difficulty paying a tax bill.

If a self-employed business owner who files their Self Assessment tax return cannot pay the bill, for example, they may be able to use the Time To Pay service to agree a payment plan with HMRC. Businesses that do not agree to a plan with HMRC are likely to be charged a penalty for late payment of bills.

These arrangements are reviewed on a case-by-case basis and are usually tailored to the individual circumstances of the business or individual concerned. HMRC provides more information about this on its website.

Paying tax bills during the coronavirus crisis

If a business cannot pay a tax bill as a result of the coronavirus (Covid-19) crisis it may be able to defer payment, depending on the type of tax bill in question. Businesses can:

  • defer VAT payments due before 30th June 2020 until 31st March 2021
  • defer Self Assessment payments on account due in July 2020 until 31st January 2021

If you are struggling to pay another type of tax bill for your business as a result of the coronavirus crisis, you should contact HMRC through its dedicated coronavirus helpline to discuss your options.

To learn more about what the coronavirus crisis could mean for your business and to stay up to date with the latest news, take a look at our small business coronavirus hub.

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