Self-assessment taxpayers can spread the cost of their tax bill if they need to

Self-assessment taxpayers are being reminded that they are able to access help with their payments should they need it.

At this time of year in particular, some people may be struggling financially – so HMRC is reminding people that if they’re concerned they can’t pay their tax bill on time, they could set up a payment plan which would involve regular monthly payments in return for avoiding any further late payment penalties.

More than 15,000 people have already set up a Time to Pay payment plan for the 2023 to 2024 tax year.

The online deadline date to file and pay any tax owed is the 31^st of January 2025, so anyone unable to pay their tax bill in full, owes less than £30,000 and is eligible, can easily apply online without needing to contact HMRC directly.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said, “We’re here to help customers get their tax right and if you are worried about how to pay your Self Assessment bill, help and support is available.

“Customers can set up their online payment plan to suit their own financial circumstances and can spread those payments across a maximum of 12 months. It is a valuable option for someone needing extra flexibility in meeting their tax obligations.”

You’ll need to file a tax return if you:

• are newly self-employed and have earned more than £1,000.
• are self-employed and earn less than £1,000 but you wish to pay Class 2 NICs voluntarily so you can protect your entitlement to the State Pension and other certain benefits.
• have multiple sources of income.
• earn income from property that you own and rent out.
• receive more than £10,000 in interest from banks and building societies.
• receive dividends in excess of £10,000.
• are claiming Child Benefit and you or your partner have an income above £50,000.

This is not an exhaustive list, and if you’re still unsure, an online checking tool is available on the Government website.

To find out more about contracting please contact Lauren on 01206 591 000 or email lauren.monks@contractorumbrella.com.