Get Answers
When you can set up a Time to Pay arrangement
You can usually set up a Time to Pay arrangement with HMRC if you cannot pay your Self Assessment tax bill on time. It is designed to help people who are temporarily unable to pay the full amount straight away.
This option is generally available once your Self Assessment bill has been issued and you know you cannot clear it by the deadline. It may be suitable if you are only struggling for a short period and expect your finances to improve.
Typical deadlines and timing
For most Self Assessment taxpayers, the payment deadline is 31 January after the end of the tax year. If you miss this date or realise in advance that you cannot pay, you should contact HMRC as soon as possible.
In some cases, you may also need to make payments on account by 31 January and 31 July. If you cannot afford these instalments, a Time to Pay arrangement may help spread the cost over monthly payments.
When HMRC may agree to it
HMRC is more likely to accept a Time to Pay request if you owe a relatively small amount and can show that you can afford regular instalments. The arrangement is usually intended for tax debts that can be repaid over a set period, often up to 12 months.
You will normally need to give HMRC details of your income, spending and any savings. They will use this information to decide whether your proposed repayment plan is realistic.
How to apply
You can usually apply online through your HMRC Self Assessment account if your debt meets HMRC’s criteria. In other situations, you may need to call HMRC to discuss your circumstances and agree a plan directly.
It is important not to wait until HMRC starts formal debt collection action. Contacting them early gives you a better chance of agreeing affordable payments before extra penalties or enforcement action build up.
What to keep in mind
A Time to Pay arrangement does not erase the tax you owe. Interest usually continues to run on outstanding amounts, so the longer the debt remains unpaid, the more you may end up repaying overall.
You must keep up with the agreed instalments and continue filing future Self Assessment returns on time. If you miss payments or fall behind again, HMRC may cancel the arrangement and ask for the full balance sooner.
Frequently Asked Questions
You may be eligible for a Self Assessment Time to Pay arrangement if you owe HMRC tax that you cannot pay in full by the deadline, have filed your Self Assessment return, and can afford to make regular repayments. HMRC will also consider whether you have any other tax debts, your payment history, and whether the amount owed is within the limits they allow for an online arrangement.
Self Assessment Time to Pay arrangement eligibility generally applies to Self Assessment income tax and related charges shown on your tax return. It is intended for people who have a tax bill they cannot pay straight away, rather than for disputes over the amount owed. HMRC may accept the arrangement if the debt is suitable for repayment over time and you meet their conditions.
Yes, you may still qualify for Self Assessment Time to Pay arrangement eligibility after missing the deadline, but you should contact HMRC as soon as possible. The sooner you set up an arrangement, the more likely HMRC is to agree to it, especially if you have filed your return and can show that you can keep up with repayments.
Yes, in most cases you must have submitted your Self Assessment return before HMRC will consider Self Assessment Time to Pay arrangement eligibility. HMRC needs an accurate figure for the tax you owe before it can agree to a repayment plan. If your return is missing or incomplete, you will usually need to file it first.
Yes, inability to pay the full amount at once is the main reason many people seek Self Assessment Time to Pay arrangement eligibility. HMRC may allow you to spread the cost over monthly instalments if you can show that paying in full would cause difficulty and that you can afford the proposed repayments.
Yes, other debts can affect Self Assessment Time to Pay arrangement eligibility because HMRC will look at your overall financial position. If you already have significant arrears with HMRC or other creditors, HMRC may ask for more information before deciding whether a Time to Pay arrangement is appropriate.
Yes, a poor payment history can reduce your chances of Self Assessment Time to Pay arrangement eligibility. HMRC may be less likely to agree if you have repeatedly missed payments in the past or have failed to keep previous arrangements. A clear explanation and a realistic repayment proposal may still help your case.
Yes, self-employed taxpayers can often qualify for Self Assessment Time to Pay arrangement eligibility if they owe tax under Self Assessment and cannot pay in full. HMRC will still assess whether you can afford the repayments and whether the arrangement is manageable based on your income and expenses.
Yes, being employed as well as self-employed does not prevent Self Assessment Time to Pay arrangement eligibility. HMRC looks at the tax debt and your ability to repay, not just your employment status. Your combined income and outgoings will help determine whether a payment plan is affordable.
Yes, the size of the tax bill can affect Self Assessment Time to Pay arrangement eligibility. Smaller debts are often easier to arrange online, while larger amounts may require HMRC to review your finances more closely. The key issue is whether the debt can reasonably be repaid over the proposed period.
Yes, you may still qualify for Self Assessment Time to Pay arrangement eligibility if your monthly payments are small, as long as they are realistic and regular. HMRC will want to see that the amount and length of the arrangement are affordable and that you are making a genuine effort to clear the debt.
Yes, filing on time can support Self Assessment Time to Pay arrangement eligibility because HMRC is more likely to consider your request if your return has been submitted correctly. Late filing can make the process more difficult and may add penalties or interest, but it does not automatically prevent an arrangement.
Yes, penalties and interest may form part of the total amount covered by Self Assessment Time to Pay arrangement eligibility if they are included in the balance HMRC says you owe. The arrangement usually covers the full outstanding amount, but you should confirm the exact figure with HMRC before agreeing to a payment plan.
You do not always need formal proof of hardship for Self Assessment Time to Pay arrangement eligibility, but HMRC may ask about your income, spending, savings, and assets. They use this information to decide whether you genuinely need extra time and whether the repayments are affordable.
Possibly, but savings can affect Self Assessment Time to Pay arrangement eligibility because HMRC may expect you to use available funds to pay some or all of the debt. If your savings are needed for essential living costs, business expenses, or other pressing commitments, HMRC may still consider an arrangement.
Being on a low income can support Self Assessment Time to Pay arrangement eligibility because it may explain why you cannot pay the bill in full. HMRC will still assess whether you can make affordable repayments, but a limited income may make a repayment plan more likely to be accepted.
Yes, a temporary cash flow problem is one of the most common reasons for Self Assessment Time to Pay arrangement eligibility. If you expect your finances to improve soon and can make payments over time, HMRC may agree to a short-term arrangement rather than require immediate full payment.
Existing arrangements do not automatically remove Self Assessment Time to Pay arrangement eligibility, but they can affect HMRC's decision. If you already have unpaid HMRC debts or have failed to keep to another plan, HMRC may want a closer review before agreeing to a new arrangement.
Usually, Self Assessment Time to Pay arrangement eligibility is for people who accept that they owe the tax but cannot pay it yet. If you dispute the amount, you should raise that issue with HMRC first, because Time to Pay is generally not meant to settle disagreements over liability.
HMRC decides Self Assessment Time to Pay arrangement eligibility by looking at whether your Self Assessment return has been filed, how much you owe, whether you can pay in full, your financial circumstances, and your history of paying HMRC on time. If HMRC believes the proposed plan is affordable and realistic, it may agree to the arrangement.
Ergsy Search Results
This website offers general information and is not a substitute for professional advice.
Always seek guidance from qualified professionals.
If you have any medical concerns or need urgent help, contact a healthcare professional or emergency services immediately.
Some of this content was generated with AI assistance. We've done our best to keep it accurate, helpful, and human-friendly.
- Ergsy carefully checks the information in the videos we provide here.
- Videos shown by Youtube after a video has completed, have NOT been reviewed by ERGSY.
- To view, click the arrow in centre of video.
- Most of the videos you find here will have subtitles and/or closed captions available.
- You may need to turn these on, and choose your preferred language.
- Go to the video you'd like to watch.
- If closed captions (CC) are available, settings will be visible on the bottom right of the video player.
- To turn on Captions, click settings.
- To turn off Captions, click settings again.