More than 20,000 self-employed business owners have used the Time to Pay self-serve facility to spread the cost of their 2020/21 tax bill, it has been revealed.
The figures, published by HM Revenue & Customs (HMRC), suggest that poor cash flow remains a major issue in the wake of the coronavirus pandemic.
If your business may struggle to pay in time, here’s what you need to know.
When is the 2020/21 Self-Assessment deadline?
Self-employed business owners, property owners, and others required to report tax have until 31 January 2022 to complete their tax return for the 2020/21 financial year and pay their bill.
What if I cannot pay in full?
Business owners who cannot pay in full have been invited to set up their own Time to Pay arrangement to spread the cost of their tax bill.
The facility enables customers to create a bespoke monthly payment plan, based on how much tax is owed and the length of time needed to pay, without talking directly to HMRC.
Can I set up a Time to Pay plan?
Taxpayers can only set up a Time to Pay arrangement for the 2020/21 financial year if they:
- have filed their tax return for the 2020/21 financial year
- owe less than £30,000
- are within 60 days of the payment deadline
- plan to pay their debt off within the next 12 months or less
What if I owe more than £30,000?
Should a business owe more than £30,000, or need longer to pay, they should call the Self Assessment Payment Helpline on 0300 200 3822.
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For help and advice with related matters, please get in touch with our team today.