Are you stressing about paying your upcoming self-assessment tax bill?
Today I’m going to share with you some information that may help alleviate some of that stress. 🙌🏻
The UK Government has announced that if you are unable to pay your self-assessment tax liabilities by January 31st 2021 due to circumstances brought about by Covid-19 you may seek a “time to pay arrangement” with HMRC.
This will enable you to secure a payment plan for your self-assessment tax liability. You can make arrangements to spread your payments over the next 12 months, giving you until January 31st 2022 to complete the payments.
A few things to note, this service is only applicable for self-assessment taxes. If you pay any other tax, you must contact HMRC directly. It is a self-serve online service for debts of £30,000 and below. If you have self-assessment debts over £30,000 a call to HMRC will be required.
Before undertaking a payment plan, I would highly suggest that you work these payments into your monthly budget whilst still accounting for the following years’ tax savings to ensure it’s affordable.
You are still liable to pay your self-assessment tax, this is just simply a way to spread the payment and make it more manageable if your business has been affected by Covid-19.
As I previously mentioned, this is a self-serve service. The below link will take you directly to the HMRC website where you can get more information about how to proceed.
I hope this has helped in some way. Until next time.
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