As the 31 January deadline for self-assessment tax returns approaches, HMRC has reported that nearly 44,800 individuals are addressing their tax liabilities, which total close to £148 million, through payment plans.
To date, over 7.7 million self-assessment customers have filed their returns for the 2022/23 tax year, but HMRC is urging those yet to settle their tax bills to act swiftly to avoid non-compliance penalties.
For those facing financial constraints, HMRC offers a Time to Pay monthly payment plan. This option is available for individuals owing less than £30,000, and they can determine the most feasible arrangement using the affordability checker on GOV.UK.
Self-assessment customers must also apply within 60 days of the payment deadline and ensure that they have no other payment plans or outstanding debts with HMRC to sign up for Time to Pay online.
It's important to note that interest will accrue on any outstanding amounts from 1 February.
Myrtle Lloyd, HMRC's director general for customer services, said:
"We want to help self-assessment customers meet their obligations and there is no time like the present to choose the right payment option for you.
"Whether you choose to pay in instalments, via the HMRC app or using online banking, search ‘pay your self-assessment tax bill' on GOV.UK for a full list of options."
Talk to us about your tax liabilities.