Budget Payment Plan for Self Assessment

HMRC have announced that anyone who is registered for Self Assessment Tax and whose payments and returns are up to date have the option to start a Budget Payment Plan for Self Assessment.

You can set up and manage your Budget Payment Plan using your HMRC online account and make regular advance payments by Direct Debit payments towards your next Self Assessment tax bill, reducing what you have to pay on the 31st of January and 31st of July deadlines.

Pay weekly or monthly

You can decide the regular weekly or monthly amount you want HMRC to collect and choose to:

amend your regular payment amount
suspend payment for a period of up to six months
cancel it at any time

You can set up a Budget Payment Plan if you want to make regular monthly or weekly payments towards your next tax bill.

The amount in your Budget Payment Plan will be used against your next tax bill – this means you’ll have less to pay at the payment deadline. If the amount in your plan does not cover your next bill in full, you’ll need to pay the difference. If you’re in credit, you can request a refund.

When you set up your Budget Payment Plan, you’ll choose how much you want to pay and how often.

You can pause payments for up to 6 months if you need to.

To use the Budget Payment Plan, you must be up to date with your previous Self Assessment payments.

Having a Budget Payment Plan for Self Assessment doesn’t mean you can delay payment beyond the due date. You must ensure that any balance still owing (after subtracting your Budget Payment Plan for Self Assessment payments) is paid off by the due date. Any balance still owed after the due date will attract interest.