As Christmas approaches, many households are busy planning for the festive season. However, it’s equally important to consider financial commitments, especially if you’re a Self Assessment customer with a tax bill due on 31 January 2025.

At Gowin Accountants Ltd, we understand the challenge of balancing holiday expenses with tax obligations. That’s why we want to share how HMRC’s Time to Pay arrangement can help you manage your tax bills while keeping the season stress-free.

What Is HMRC’s Time to Pay Arrangement?

The Time to Pay arrangement allows eligible taxpayers to spread the cost of their Self Assessment tax bill over manageable monthly payments, helping them avoid additional late payment penalties.

Key Features:

• Flexible Payment Plans: Tailored to your financial situation, with payments spread across a maximum of 12 months.
• Online Setup: For tax bills up to £30,000, you can arrange a payment plan quickly and easily online—no need to contact HMRC directly.
• Support for Larger Tax Bills: If you owe more than £30,000, you can still apply for a plan by contacting HMRC.

Eligibility Criteria

To use the online Time to Pay system, you must:

1. File your Self Assessment tax return for the 2023–2024 tax year.
2. Owe less than £30,000 in tax.
3. Be unable to pay your tax bill in full by the deadline of 31 January 2025.

Why Consider Time to Pay This Festive Season?

With holiday expenses adding up, spreading the cost of your tax bill can ease financial pressure and provide peace of mind.

• More than 15,000 taxpayers have already set up payment plans for the 2023–2024 tax year, taking advantage of the flexibility offered by HMRC.
• This option ensures you stay on top of your tax obligations without compromising your other financial priorities.

Myrtle Lloyd, HMRC’s Director General for Customer Services, says:

“We’re here to help customers get their tax right. Customers can set up their online payment plan to suit their financial circumstances, spreading payments across a maximum of 12 months. It’s a valuable option for someone needing extra flexibility in meeting their tax obligations.”

How to Get Started

1. File Your Tax Return:
   Before setting up a Time to Pay arrangement, you must file your Self Assessment tax return. The online deadline for the 2023–2024 tax year is 31 January 2025.
2. Apply for Time to Pay Online:
   • Log in to your HMRC account.
   • Choose a payment plan that works for you.
   • Spread the cost over monthly installments to suit your budget.
3. Explore Payment Options:
   Payments can be made securely through:
   • The free HMRC app.
   • The GOV.UK website.
   • Other payment methods detailed on GOV.UK.

For additional guidance, HMRC provides a helpful YouTube video explaining Self Assessment tax bills and payment methods.

Gowin Accountants Are Here to Help

At Gowin Accountants Ltd, we’re committed to supporting you through every step of your tax journey. Whether you need assistance filing your Self Assessment tax return, setting up a Time to Pay arrangement, or navigating HMRC’s online services, our team is here to help.

Contact us today to ensure a stress-free festive season and a financially sound start to the new year!

Empowering your financial success—Gowin Accountants Ltd.