If you cannot pay your tax bill on time
Setting up a payment plan
To set up a payment plan you鈥檒l need:
- the relevant reference number for the tax you cannot pay, such as your unique tax reference number
- your UK bank account details - you must be authorised to set up a Direct Debit
- details of any previous payments you鈥檝e missed
- details of your income and spending, or your company鈥檚 income and spending if you owe company tax
You may be able to set up a payment plan online, depending on which type of tax you owe and how much you owe.
If you owe tax from Self Assessment
You can if you:
- have filed your latest tax return
- owe 拢30,000 or less
- are within 60 days of the payment deadline
- do not have any other payment plans or debts with HMRC
If you owe employers鈥� PAYE contributions
You can if you:
- have missed the deadline to pay an employer PAYE bill
- owe 拢100,000 or less
- plan to pay your debt off within the next 12 months
- have debts that are 5 years old or less
- do not have any other payment plans or debts with HMRC
- have sent any employers鈥� PAYE submissions and Construction Industry Scheme (CIS) returns that are due
If you owe tax from VAT
You can if you:
- have missed the deadline to pay a VAT bill
- owe 拢100,000 or less
- plan to pay your debt off within the next 12 months
- have a debt for an accounting period that started in 2023 or later
- do not have any other payment plans or debts with HMRC
- have filed all your tax returns
You cannot set up a VAT payment plan online if you鈥檙e in the Cash Accounting Scheme, Annual Accounting Scheme, or you make payments on account.
If you cannot set up a payment plan online
You鈥檒l need to contact HMRC.
They will ask you:
- if you can pay in full
- how much you can repay each month
- if there are other taxes you need to pay
- how much money you earn
- how much you usually spend each month
- what savings or investments you have
If you have savings or assets, HMRC will expect you to use these to reduce your debt as much as possible.
If you鈥檝e received independent debt advice, for example from Citizens Advice, you may have a 鈥楽tandard Financial Statement鈥�. HMRC will accept this as evidence of what you earn and spend each month.
If your company is in tax debt
HMRC will ask you to propose how you鈥檒l pay your tax bill as quickly as you can. They will ask questions about your proposal to make sure it is realistic and affordable for you.
You must reduce your debt as much as possible before setting up a payment plan. You can do this by releasing assets like stock, vehicles and shares.
HMRC may ask company directors to:
- put personal funds into the business
- accept lending
- extend credit