You have the option to establish a Budget Payment plan, allowing you to make regular Direct Debit payments either on a weekly or monthly basis towards your upcoming Self Assessment tax bill.
These payments will be utilized to offset your future tax bill, reducing the amount due at the payment deadline. To set up this plan, you must be current with any outstanding payments from your previous Self Assessment tax bill.
Self Assessment tax payments are required by specific dates:
Once you are up to date with your payments:
Should the payments made not cover the entirety of your upcoming bill, you will need to pay the difference. Conversely, if you have overpaid, you can request a refund.
If necessary, you can temporarily suspend payments for up to six months.
If you find yourself unable to pay your tax bill, perhaps because you missed the Self Assessment payment deadline or lack the funds to cover the amount owed, there is an option to arrange a payment plan, commonly referred to as a ‘Time to Pay’ arrangement.
To determine the appropriate payment plan for your situation, you can use a tool that assesses your eligibility for setting up regular payments towards your Self Assessment tax bill.
To initiate a payment plan, you will need your 11-character payment reference. This reference consists of your 10-digit Unique Taxpayer Reference (UTR) followed by the letter ‘K’. You can locate this reference:
For the latest information please check HMRC’s website here
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