Help is available to taxpayers who struggle to pay their bills. It’s called a Time to Pay arrangement. However, you may not know about the Budget Payment Plan. The service is for people whose tax affairs are on track. It’s a chance to plan your payments. So tax deadlines don’t bring nasty surprises.
Generally, a Budget Payment Plan is available to self-assessment taxpayers. To qualify, your payments and returns must be up to date. Quite simply, you make regular payments in advance. These go towards your next self-assessment tax bill. HM Revenue & Customs (HMRC) collects payment by direct debit. How much should you pay and how often? It’s up to you.
Setting up and managing a Budget Payment Plan is straightforward. Everything is accessible via your Government Gateway account. You decide on the weekly or monthly amount HMRC collects. It’s easy to amend your regular payment amount. Suspend payment for up to six months if necessary. Cancel a Budget Payment Plan at any time.
Of course, implementing a Budget Payment Plan doesn’t mean you can delay payment. Subtract Budget Payment Plan payments from the tax owed. Then pay any balance promptly. Always pay on time. Tax outstanding after the due date becomes liable for interest. Conversely, if you’re in credit, ask for a refund.
Paying tax with a Budget Payment Plan offers flexibility. There are key advantages to making regular payments. You’ll have less to pay on January 31. The July 31 deadline payment is lower, too.
Find out more at https://www.gov.uk/pay-self-assessment-tax-bill/pay-weekly-monthly. Unsure if you can make regular self-assessment tax payments? There’s a tool to check if you’re eligible. You’ll also find details about setting up a Budget Payment Plan.