You may already be aware that the government have announced an enhanced Time To Pay (TTP) scheme for those who have been affected by Coronavirus and are struggling to make their tax payments.
This arrangement will allow any liabilities that are due on 31 January 2021 to be spread across up to 12 monthly instalments, and you will be able to apply for this online using a personal tax account, providing the following criteria are met:
• You must have filed your 2019/20 tax return (and have allowed HMRC time to process the return which can take up to 72 hours) and also have no other tax returns outstanding.
• You cannot have any other payment plans set up with HMRC or any other tax debts.
• Your debt must be between £32 and £30,000.
• Strictly the payment plan must be set up within 60 days of the date of the tax becoming due i.e. 1 April 2021, but it is advisable to ensure it is set up before 2 March 2021 to avoid any late payment penalties from being charged.
If you do not meet this criteria, your debt is more than £30,000 or you wish for the payment period to be longer than 12 months, you may still be able to set up a Time To Pay (TTP) arrangement but will need to call the normal self-assessment helpline on 0300 200 3822.
The enhanced Time To Pay (TTP) arrangement can include all tax which is due on 31 January 2021, including –
• Any deferred 2019/20 second payment on account (that was originally due on 31 July 2020)
• Your 2019/20 balancing payment
• And your first 2020/21 payment on account
Unlike the deferral of the second 2019/20 payment on account, interest will be charged from 1 February 2021, on any outstanding amount, until it is fully settled.
If you would like to take advantage of the enhanced TTP arrangement then please get in touch with your usual point of contact at Albert Goodman who will be able to provide you with further details.