Nearly 100,000 opt to spread the cost of their 2020-21 tax bills

18 February 2022

Her Majesty’s Revenue and Customs (HMRC) confirmed, on 15 February 2022, that nearly 100,000 individuals who use self-assessment have utilised payment plans to spread the cost of their tax bills for tax year 2020-21, since April 2021.

A time to pay arrangement can be set up once the 2020-21 self-assessment tax return has been filed, for a period of up to 12 months, on debts up to a maximum of £30,000. The entire process can be completed online at GOV.UK

Individuals with debts exceeding £30,000 and those who require longer than 12 months to pay will need to contact HMRC.

HMRC also confirmed the time to pay service has been used to pay more than £310 million in tax in instalments, since April 2021. 

31 January 2022 was the deadline for filing tax returns and paying any tax owed or creating a payment plan. HMRC, however, has allowed extra time this year, so:

•    Anyone who didn’t file their return by 31 January 2022 will not receive a late filing penalty, if they file by 28 February 2022
•    Anyone who didn’t pay their tax liabilities by the January deadline will not receive a late payment penalty, as long as they pay their tax in full or create a time to pay arrangement by 1 April 2022. 

HMRC is sending out reminders that the 2020-21 self-assessment should include details of any grants or payments received from Covid-19 support schemes, up to 5 April 2021. 

This includes the self-employment income support scheme, the coronavirus job retention scheme, and any other Covid-19 grants and support payments. It doesn’t, however, include the £500 one-off payment for working households receiving tax credits. 

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