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How To Delay Paying Your Tax

During this pandemic, many businesses are finding it increasingly difficult to balance the cashflow and will need to make arrangements to spread the cost of their tax.

HMRC’s dedicated helpline has been set up to support businesses and individuals with their tax liabilities.

The number to call is 0800 024 1222, and the lines are open between 8 am to 4 pm Monday to Friday.  We suggest the best time to call is 8 am and not to try and contact them after 2 pm.

Before you call, make sure you have the following information ready:

  • Your UTR – Unique Tax Reference (Usually a 10-digit number)
  • Your tax specific reference for the tax you are calling about
    • VAT number
    • PAYE Ref
    • Your Accounts Office Reference
    • Your address

You may have to prove financial distress, so make sure you know:

  • Your cash balance
  • How much you are owed
  • How much you owe
  • Details of loans and overdrafts

In many cases, HMRC are allowing time-to-pay arrangements with little or no scrutiny, but for some, they are asking for proof. So be prepared to answer some difficult, and sometimes annoying, questions, such as:

  • Can you find other sources of funding?
  • Do you have a credit card you can use?

We would normally talk to HMRC on your behalf but unfortunately, with this, we cannot. However, if you need any of the information listed above, please do call us.

Spreading the cost of self-assessment

The Government had already extended the deadline for the July 2020 payment on account until January 31, 2021.  But to help people further, it is now letting people spread this delayed July 2020 payment, and the January 2021 payment, over 12 months with a time-to-pay arrangement.

There are two ways you can apply for a time-to-pay arrangement:

  1. If you owe less than £30,000, and you can pay back this back over 12 months, you can apply online here. 

You will need your government gateway user ID for the application. You will then be able to choose how much to pay straight away and how much you want to pay each month via a direct debit. Be aware that you will pay interest of 2.6% for the privilege of spreading the cost and could also be asked to pay everything you owe in one go if you miss an instalment.

  1. If you owe more than £30,000 or need longer than 12 months to pay back what you owe, you can apply for an instalment plan by calling the Payment Support Service on 0300 200 3835.


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