Time to pay arrangements - now much easier to agree
Agreeing a time to pay (TTP) arrangement used to involve calling HMRC and convincing it that you were struggling to pay. Agreement was often made grudgingly. This stance has softened in recent years, and there may be no need to make a call at all. What do you need to know?
TTP arrangements are informal agreements between the taxpayer and HMRC in situations where the self-assessment bill can’t be paid in full by the deadline. Instead, the TTP arrangement allows the bill to be spread across monthly instalments by direct debit. Previously, TTP arrangements could only be set up by calling the self-assessment helpline, explaining the circumstances, and making a case for it. Taxpayers would often find HMRC reluctant to agree a payment period of more than a few months. The advent of the pandemic and the cost of living crisis has changed this.
It's now possible to set up a TTP arrangement online with no need to make a call. This will be possible if you:
- have filed your tax return
- are within 60 days of the payment deadline
- owe less than £30,000; and
- can pay in full within twelve months.
Guidance on how to set this up is available online. Note that late payment interest will be charged, but no late payment penalties. As interest rates are steadily increasing, paying sooner rather than later is recommended wherever possible.
Related Topics
-
MONTHLY FOCUS: BUSINESS AND AGRICULTURAL PROPERTY RELIEF: WHAT DO THE NEW IHT RULES MEAN FOR YOU?
The inheritance tax treatment of businesses and farms changed fundamentally from 6 April 2026. The amount that can qualify for 100% business property relief and agricultural property relief is now capped, potentially leaving families with a significant tax bill for the first time. What has changed, and what should business owners and farmers be doing about it?
-
Already paid CGT? Don't pay it twice through Self Assessment
Taxpayers completing their 2025/26 Self Assessment return may need to include capital gains that have already been reported separately to HMRC, together with any capital gains tax (CGT) already paid. How could this lead to a double payment?
-
HMRC moves tax return registration into the digital age
A new and improved self-assessment registration service has been launched. What's changed?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.