HMRC’s time to pay facility offers a monthly repayment arrangement to taxpayers struggling to settle an outstanding tax liability in full, on time.

Where criteria are met, this can now be arranged online for an employer’s PAYE liability, removing the need to phone HMRC. This can already be done for income tax Self Assessment.

Payments tailored to your circumstances

HMRC always tailors time to pay arrangements to the circumstances of the individual taxpayer. This means monthly repayments are worked out with reference to your income and expenditure, and HMRC is open to renegotiating repayments if circumstances change.

Whilst HMRC is committed to trying to help taxpayers pay their outstanding liabilities, it also has to be convinced that there is a realistic chance of repayment. If it thinks that someone is unlikely to be able to keep up repayments, it will probably refuse time to pay.

Who can use the HMRC time to pay online service?

• The online option can be used if:
• you owe less than £15,000
• are within 35 days of the payment deadline
• can pay the debt off within the next six months
• don’t have any other payment plans or debts with HMRC
• your employer’s PAYE submissions have been submitted
• any Construction Industry Scheme returns have been submitted.

It’s important to note that there is still interest to pay on outstanding tax, even where a time to pay arrangement is in place.

How to do it

To start the procedure off, follow the links from the ‘If you cannot pay your tax bill on time’ page on gov.uk. You need your employer PAYE reference number to hand, plus your bank account details and details of any payments missed already.

If online isn’t an option

If you can’t tick all the boxes for the online criteria, time to pay is still an option. It’s simply that there is a different route to apply. Here you should use either HMRC webchat, via the link on the ‘Payment problems’ page, or the Payment Support Service phone line. This is available on 0300 200 3835 between 8am and 6pm, Monday to Friday.

If you have any questions about your outstanding tax liability, please speak to your RfM advisor. Enquire online or contact one of our offices.

For information of users: This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm.