HMRC Increases Instalment Threshold

HMRC Increases Instalment Threshold

In an effort to help ease pressure brought about by the COVID-19 crisis, HMRC has increased the threshold for self-assessing taxpayers to spread the cost of their bill. Where anyone with liabilities up to £10,000 could contact the Revenue to set up instalment payments, this has now been increased to £30,000. Jesse Norman, Financial Secretary to the Treasury, said: “We are supporting jobs by giving more breathing space to up to 11m self-assessment taxpayers.” He added that the move “should ease the financial burdens and protect the livelihoods of these taxpayers in the months ahead.”

VAT Deferral New Payment Scheme

If you deferred payments that were due between 20 March and 30 June 2020, then these payments need to be made to HMRC by 31‌‌ March 2021. You can use the New Payment Scheme to spread these payments over equal instalments up to 31‌‌ March 2022. Alternatively, you can make payments as normal by 31‌‌ March 2021 or make Time To Pay arrangements with HMRC if you need more tailored support.

New Self Assessment Self-Serve Time To Pay Scheme

If you deferred paying your July 2020 Payment on Account, you will need to pay the deferred amount, in addition to any balancing payment and first 2020/21 Payment on Account, by 3‌1‌‌ ‌‌January 2021. This may be a larger payment than you usually pay in January.

If you’re unable to pay your Self-Assessment (SA) bill in full by 31‌‌ January 2021, you can set up a Time to Pay payment plan of up to 12 months online without speaking to us. If you have SA tax debts of up to £30,000, you’ll able to access this Time to Pay facility through GOV‌.UK and will get automatic and immediate approval. If your SA debts are over £30,000, or you need longer than 12 months to repay your debt in full, you will still be able to use our Time to Pay arrangement by calling HMRC.