Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what flexibility is provided in his plans to allow an additional 12 months for self-assessment taxpayers to pay their liabilities.

The Chancellor understands that many Self-Assessment taxpayers may find it difficult paying their Self-Assessment liabilities that become due on 31 January 2021, due to the impact of the coronavirus pandemic.

Therefore, on 1 October 2020, the Chancellor announced that from that date HMRC’s online payment service had been upgraded to enable more taxpayers to set up a Time To Pay instalment payment plan without the need to contact HMRC beforehand. The threshold for using this service was increased from £10,000 to £30,000. HMRC estimate that the increase in this threshold will enable 95% of the Self-Assessment liabilities becoming due on 31 January 2021 to be paid this way.

Those taxpayers with Self-Assessment liabilities in excess of £30,000 can still contact HMRC to set up a bespoke Time To Pay arrangement appropriate to their personal circumstances.

HMRC can be flexible with the duration of payment instalments. If a taxpayer needs longer than 12 months to settle their tax liabilities they are encouraged to contact HMRC in the usual way to agree a longer payment plan.