HMRC has recently amended the rules around who can arrange a time to pay arrangement online for any unpaid tax, with the new expanded rules bringing in additional taxpayers who wouldn’t have qualified before.
The new system, simple assessment, is used by HMRC to collect unpaid tax in circumstances where it cannot usually be collected. For example, if any tax is due on a state pension which can’t be collected through PAYE and the taxpayer isn’t required to complete a self-assessment return. In this circumstance HMRC will issue a letter with a basis calculation for the taxpayer to check at this point either to pay or to contact HMRC if the calculation is incorrect.
The general payment deadline for any unpaid tax is 31 January following the end of the tax year the liability arises in. However, under the new rules taxpayers can now set up a time to pay arrangement online, avoiding the need to call HMRC and explain the circumstances. There is no guarantee it will be accepted online and there are a few criteria that needs to be met before applying, but it is the first step for most people. To make an online application you need to meet the below criteria:
- The tax due is between £3,000 and £50,000;
- You owe no other debts to HMRC and have no other payment plans set up.
If you’d like further information, or assistance with setting up the online payment plan please get in touch with us.
