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Time To Pay threshold increase

Time To Pay threshold increase

Chris Goodwin

Almost 25,000 Self-Assessment customers have set up an online payment plan to manage their tax liabilities in up to 12 monthly instalments, totalling £69.1 million, HMRC revealed recently.

In October, HMRC increased the threshold of self assessment liabilities from £10,000 to £30,000 for individuals setting up Time to Pay arrangements. Once they have completed their 2019-20 tax return and know how much tax they owe, taxpayers can use the self-serve facility to set up monthly direct debits and spread the cost of their tax bill.

Taxpayers can apply for the payment plan here. However, they must meet the following requirements:

•    they need to have no:
                 •    outstanding tax returns
                 •    other tax debts
                 •    other HMRC payment plans set up

•    the debt needs to be no more than £30,000

•    the payment plan needs to be set up no later than 60 days after the due date of a debt

If you need assistance with any of the above, please contact your local Moore (South) team by clicking here.