From 1 October, the limit for TTP, the online payment plan service used to set up instalment arrangements for paying tax liabilities, is increased to £30,000 from £10,000.
This means that self-assessment tax payers with liabilities of up to £30,000 can now apply online to spread the cost of their tax liability via instalments.
This increased threshold follows the Chancellor of the Exchequer’s announcement on 24 September to increase support for businesses and individuals through the tricky months ahead.
HMRC estimates that around 95% of self-assessment taxpayers who are due to make payments on 31 January 2021 could qualify to implement a TTP arrangement using the online facility, without needing to speak to an HMRC adviser.
Self-assessment tax payers wishing to defer their tax bill online and spread the cost must meet the following criteria:
Any payment plans must be in place no later than 60 days after the due date of the debt.
Interest will be payable on the ‘self serve’ TTP scheme and interest will be applied to any outstanding balance from 1 February 2021.
Payment plans under the self serve scheme can be set up via the following link ( your Government Gateway ID and password will be required)
Jesse Norman, Financial Secretary to the Treasury, said, ‘We are supporting jobs by giving more breathing space for up to 11m self assessment taxpayers when managing their tax affairs.
‘Enhancing time to pay should ease the financial burdens and protect the livelihoods of these taxpayers, as they navigate the months ahead.’
For more advice please get in touch.
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