{"id":775,"date":"2021-01-19T00:00:00","date_gmt":"2021-01-19T00:00:00","guid":{"rendered":"http:\/\/duffyregan.co.uk\/index.php\/2021\/01\/19\/consider-online-tax-payment-plans\/"},"modified":"2021-01-19T00:00:00","modified_gmt":"2021-01-19T00:00:00","slug":"consider-online-tax-payment-plans","status":"publish","type":"post","link":"http:\/\/duffyregan.co.uk\/index.php\/2021\/01\/19\/consider-online-tax-payment-plans\/","title":{"rendered":"Consider online tax payment plans"},"content":{"rendered":"<p>January is the month that taxpayers registered for self-assessment need to pay their taxes. Usually, this amounts to any underpayment for the previous tax year and a first payment on account for the current tax year.<\/p>\n<p>Unfortunately, HMRC will base their payment on account for 2020-21 on the self-assessment liability for the previous tax year, 2019-20. As may traders have experienced a downturn in profits during the period of COVID disruption since February 2019, they need to reduce their payments on account for 2020-21 to reflect the lower profit compared to that for 2019-20.<\/p>\n<p>In this way you can recalculate any payments on account for 2020-21 based on the reduced activity.<\/p>\n<p>Even with these reductions in the January 2021, payment on account, many taxpayers will be faced with paying tax bills and have no funds to do so.<\/p>\n<p>In a recent press release, HMRC explained the current support they are prepared to offer taxpayers to spread any tax payments over twelve monthly instalments.<\/p>\n<p>They said:<\/p>\n<p><em>Almost 25,000 Self-Assessment customers have set up an online payment plan to manage their tax liabilities in up to 12 monthly instalments, totalling &pound;69.1 million, HM Revenue and Customs (HMRC) has revealed today (13 January 2021).<\/em><\/p>\n<p><em>In October, HMRC increased the threshold for self-serve Time to Pay arrangements from &pound;10,000 to &pound;30,000 for Self-Assessment customers. Once they have completed their 2019-20 tax return and know how much tax they owe, customers can use the self-serve facility to set up monthly direct debits and spread the cost of their tax bill.<\/em><\/p>\n<p><em>Visit GOV.UK to find out more about Payments on Account.<\/em><\/p>\n<p><em>The self-serve Time to Pay threshold was increased to help businesses and individuals who have been affected by the coronavirus pandemic. Supporting Self-Assessment customers to manage their tax bills can help ease their financial commitments into more manageable monthly payments. To date, the average value of payment plans set up online is &pound;2,821.<\/em><\/p>\n<p><em>Customers can apply for the payment plan via GOV.UK. However, they must meet the following requirements:<\/em><\/p>\n<ul>\n<li><em>they need to have no:<\/em>\n<ul style=\"list-style-type:disc\">\n<li><em>outstanding tax returns<\/em><\/li>\n<li><em>other tax debts<\/em><\/li>\n<li><em>other HMRC payment plans set up<\/em><\/li>\n<\/ul>\n<\/li>\n<li><em>the debt needs to be between &pound;32 and &pound;30,000<\/em><\/li>\n<li><em>the payment plan needs to be set up no later than 60 days after the due date of a debt<\/em><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>NOTE: Be aware of copycat HMRC websites and phishing scams. Taxpayers should always type in the full online address www.gov.uk\/hmrc to get the correct link for their Self-Assessment tax return online securely and free of charge.<\/p>\n<p>They also need to be alert if someone calls, emails or texts claiming to be from HMRC, saying that they can claim financial help, are due a tax refund or owe tax. It might be a scam. Check GOV.UK for information on how to recognise genuine HMRC contact.<\/p>\n<!-- -->","protected":false},"excerpt":{"rendered":"<p>January is the month that taxpayers registered for self-assessment need to pay their taxes. Usually, this amounts to any underpayment for the previous tax year and a first payment on account for the current tax year. Unfortunately, HMRC will base their payment on account for 2020-21 on the self-assessment liability for the previous tax year, [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-775","post","type-post","status-publish","format-standard","hentry","category-uncategorised"],"_links":{"self":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/775","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=775"}],"version-history":[{"count":0,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/775\/revisions"}],"wp:attachment":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=775"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=775"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=775"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}