Time to Pay arrangements

time to pay arrangements

The Government recently announced Time to Pay arrangements in respect of deferred VAT payments and Self Assessment.  Here’s a bit more detail.

VAT Deferral New Payment Scheme

If you deferred VAT payments that were due between the 20th of March and the 30th of June 2020, then these payments need to be made to HMRC by the 3‌1st of‌‌ ‌‌March 2021.

Employers can now:

  • use the New VAT Deferral Payment Scheme to spread these payments over equal instalments up to the 3‌1st of‌‌ ‌‌March 2022, or
  • make payments as normal by the 3‌1st of‌‌ ‌‌March 2021, or
  • make Time To Pay arrangements with HMRC if you need more tailored support.

New Self Assessment Self-Serve Time To Pay Scheme

If you deferred paying your July 2020 Self Assessment Payment on Account, you will need to:

  • pay the deferred amount,
  • in addition to any balancing payment, and
  • first 2020/21 Payment on Account,

by the 3‌1st of‌‌ ‌‌January 2021.  This may be a larger payment than you usually pay in January.

If you are unable to pay your Self-Assessment (SA) bill in full by the 31st of‌‌ January 2021, you can set up a Time to Pay payment plan of up to 12 months online without speaking to HMRC. If employers:

  • have SA tax debts of up to £30,000, they will be able to access this Time to Pay facility through GOV‌.UK and will get automatic and immediate approval.
  • have SA debts over £30,000, or they need longer than 12 months to repay their debt in full, they will still be able to use the Time to Pay arrangement by calling HMRC.

More Information on the Time to Pay arrangements

You can find More Information on the Time to Pay arrangements on GOV‌‌‌‌.UK

Help and support

If you need help with Time to Pay arrangements or any aspect of your VAT or Self Assessment Tax contact me now.

Authorisation to discuss SEISS

HMRC will need additional authorisation to discuss SEISS (the Self [...]

Reporting Covid Support grants on your tax return

Do you know what the requirements are in terms of [...]

Reporting SEISS grants on your tax return

Do you know what the requirements are in terms of [...]

Contact me now if you need help with Making Tax Digital