Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to support (a) self-employed people, (b) freelancers and (c) sole-directors of small limited companies who have deferred their tax payments in response to the covid-19 outbreak and remain unable to make those payments.

The Chancellor understands that many Self-Assessment taxpayers, including self-employed persons, freelancers and sole directors of small limited companies, who deferred their tax payments in response to the COVID-19 outbreak, may be unable to make those payments.

Those taxpayers within the Self-Assessment tax system who deferred paying their July 2020 Payment on Account will have that payment and possibly two other payments to make on 31 January 2021. In order to assist those taxpayers, HMRC have enhanced their self-service Time to Pay online facility.

Prior to October 2020, that service could only be used to pay tax liabilities of up to £10,000. However, HMRC increased the threshold to £30,000, so that it is now available to far more Self-Assessment taxpayers than before. Self-Assessment taxpayers eligible to use this service can set up a direct debit payment arrangement online without having to contact HMRC directly. HMRC estimate that up to 95% of Self-Assessment taxpayers owing Self-Assessment payments on 31 January 2021 will be able to use this online payment service to spread their payments over 12 instalments.

Taxpayers with Self-Assessment tax liabilities over £30,000 may still agree a Time to Pay arrangement with HMRC by contacting them directly. Further information is available on GOV.UK.