Those taxpayers who may have difficulty paying the tax due under self-assessment on 31 January 2021 can agree more time to pay with HMRC provided the amount outstanding is no more than £30,000.
The government has already agreed that amounts due under self-assessment on 31 July 2020 could be deferred until 31 January 2021, but this latest announcement generally allows a further 12 months to pay.
A key condition is that the taxpayer does not have any outstanding tax returns, no other tax debts, or other HMRC payment plans set up. The payment plan needs to be set up no later than 60 days after the due date of a debt. Interest will accrue on the tax owed based on the outstanding balance at 1 February 2021.
You can either set up a payment plan online by logging into your HMRC online personal tax account or call the HMRC Payment Support Service.
For more information and to discuss your tax affairs in further detail, contact Barrie Dunning or your usual Beavis Morgan Partner.