Time to Pay: at a glance<\/strong><\/h2>\n\n\n\n\n- payment plans can be set up if you owe \u00a330,000 or less<\/li>\n\n\n\n
- you must have filed your latest tax return <\/li>\n\n\n\n
- it must be set up at least 60 days before the tax is due <\/li>\n\n\n\n
- penalties and interest are charged once tax is overdue if there isn’t a payment plan in place <\/li>\n<\/ul>\n<\/div>\n\n\n\n
For other types of business tax<\/a>, you\u2019ll need to contact HMRC.<\/p>\n\n\n\n\n\n\n- Can you pay HMRC in instalments?<\/a><\/li>\n\n\n\n
- How do I set up an HMRC payment plan?<\/a><\/li>\n\n\n\n
- What if I can\u2019t afford payment on account?<\/a><\/li>\n<\/ul>\n<\/div>\n\n\n\n\n
\n- What if I can\u2019t pay my tax bill?<\/a><\/li>\n\n\n\n
- Late payment and Making Tax Digital<\/a><\/li>\n<\/ul>\n<\/div>\n<\/div>\n\n\n\n
Time to Pay \u2013 can you pay HMRC in instalments?<\/h2>\n\n\n\n
An HMRC Time to Pay arrangement allows you to pay a tax bill in instalments<\/strong>.<\/span><\/p>\n\n\n\nIf you ignore a deadline, HMRC will charge interest and may hit you with penalties.<\/p>\n\n\n\n
Using Time to Pay, HMRC will charge interest but no additional penalties (interest and any outstanding penalties are covered by the arrangement).<\/p>\n\n\n\n
The arrangement is based on your financial circumstances, so be prepared to give HMRC this information. You\u2019ll usually need to complete an income and expenditure assessment, which works out how much you can afford to pay and how much time you\u2019ll need to settle your debt.<\/p>\n\n\n\n
HMRC won\u2019t typically ask you to pay more than 50 per cent of your disposable income.<\/p>\n\n\n\n
Time to Pay is flexible, too. So if you have the money, you can pay more (and reduce your interest). But if your situation worsens, you can lengthen the arrangement.<\/p>\n\n\n\n
\nHow do I set up an HMRC payment plan?<\/strong><\/h3>\n\n\n\nYou can set up a Self Assessment<\/strong> Time to Pay plan<\/strong> yourself online, if you owe up to \u00a330,000. Make sure you have your:<\/p>\n\n\n\n\n- tax reference number<\/li>\n\n\n\n
- bank account details (this will need to be authorised to set up a Direct Debit)<\/li>\n<\/ul>\n\n\n\n
You\u2019ll also need to give details of any previous payments you\u2019ve missed.<\/p>\n\n\n\n
HMRC will ask you:<\/p>\n\n\n\n
\n- if you can pay in full<\/li>\n\n\n\n
- how much you can repay each month<\/li>\n\n\n\n
- if you owe any other tax bills<\/li>\n\n\n\n
- to detail your income and expenses <\/li>\n\n\n\n
- about any other savings or investments you have<\/li>\n<\/ul>\n<\/div>\n\n\n\n
You can spread your payment over 12 months by Direct Debit. You need to:<\/p>\n\n\n\n
\n- have no outstanding tax returns<\/li>\n\n\n\n
- have no other tax debts<\/li>\n\n\n\n
- have no other HMRC payment plans set up<\/li>\n\n\n\n
- set up the Self Assessment payment plan no later than 60 days after the deadline<\/li>\n<\/ul>\n\n\n\n
Interest will be applied to the outstanding amount. You can sign pay your tax bill by signing into your Government Gateway account<\/a>.<\/p>\n\n\n\nYou might still be able to use Time to Pay if you owe more than \u00a330,000 or need more than 12 months, but you\u2019ll need to contact HMRC. First, try using HMRC’s chatbot<\/a> for support. If not you can call 0300 200 3401 (Monday to Friday, 8am-6pm).<\/p>\n\n\n\nYou\u2019ll also need to contact HMRC if you owe other non-Self Assessment taxes.<\/p>\n\n\n\n
\nCan\u2019t afford payment on account?<\/h2>\n\n\n\n
Payment on account<\/a> is an advance HMRC tax payment. On 31 January, you pay any remaining tax for the previous tax year, as well as half of your estimated tax bill for the current tax year.<\/p>\n\n\n\nIf someone is already in financial hardship, making a payment on account can make the situation worse. It also catches newly self-employed people<\/a> out, who are often faced with a tax bill that\u2019s much larger than expected.<\/p>\n\n\n\nIt\u2019s useful to complete your tax return<\/a> as early as possible, so you know how much tax you need to pay, including your payment on account.<\/p>\n\n\n\nBut if you can\u2019t afford payment on account and you set up an HMRC Time to Pay arrangement, you\u2019ll pay your bill in instalments<\/strong>.<\/p>\n\n\n\nKeep in mind that you can also apply to reduce payment on account<\/a> if you think your income will be lower next year. But if you reduce it so much that you underpay tax, HMRC will charge you interest and penalties.<\/p>\n<\/div>\n\n\n\nWhat if I can\u2019t pay my tax bill?<\/h2>\n\n\n\n
Make sure you get in touch with HMRC as soon as possible<\/strong>.<\/p>\n\n\n\nHMRC Time to Pay is reserved for those in financial difficulty, so if you really can\u2019t pay your bill and have no other options, don\u2019t delay.<\/p>\n\n\n\n
Time to Pay HMRC helpline<\/h3>\n\n\n\n
If you need to speak to HMRC to set up a plan, you can use the Self Assessment payment helpline.<\/p>\n\n\n\n
The number is 0300 200 3401<\/a> and it\u2019s open Monday to Friday 8am to 6pm<\/strong>. Ask about Time to Pay.<\/p>\n\n\n\nIf you can\u2019t pay a different type of tax, look for contact details on any communication you\u2019ve had from HMRC about the bill. Failing that, check the phone numbers on the HMRC website<\/a>.<\/p>\n\n\n\nThere’s also a chatbot<\/a> that’s available 24\/7 that can help point you in the right direction.<\/p>\n\n\n\n\n<\/div>\n\n\n\nWhat happens if you don’t pay tax?<\/h2>\n\n\n\n
If you don\u2019t pay tax (and don\u2019t set up an HMRC Time to Pay arrangement) you\u2019ll get penalties. Example Self Assessment penalties include:<\/p>\n\n\n\n
\n- if you haven\u2019t paid after 30 days<\/strong> \u2013 five per cent of the outstanding tax plus interest<\/li>\n\n\n\n
- if you haven\u2019t paid after six months<\/strong> \u2013 another five per cent plus interest<\/li>\n\n\n\n
- if you haven\u2019t paid after 12 months<\/strong> \u2013 again, five per cent plus interest<\/li>\n<\/ul>\n\n\n\n
You can use an HMRC tool to estimate late Self Assessment penalties<\/a>.<\/p>\n\n\n\nHMRC can also take enforcement action to get the tax owed. The tax authority might take you to court<\/strong>, collect money directly from your bank account<\/strong>, or use debt collection agencies<\/strong>.<\/p>\n\n\n\n![\"Graphic](\"https:\/\/www.simplybusiness.co.uk\/wp-content\/uploads\/sites\/3\/2025\/11\/HMRC_Penalities_Late_Payments-scaled.png?w=1024\")
<\/figure>\n\n\n\nImage credit: Simply Business<\/em><\/p>\n\n\n\nRead more: <\/strong>HMRC penalties for Self Assessment<\/a><\/p>\n\n\n\n
For other types of business tax<\/a>, you\u2019ll need to contact HMRC.<\/p>\n\n\n\n An HMRC Time to Pay arrangement allows you to pay a tax bill in instalments<\/strong>.<\/span><\/p>\n\n\n\n If you ignore a deadline, HMRC will charge interest and may hit you with penalties.<\/p>\n\n\n\n Using Time to Pay, HMRC will charge interest but no additional penalties (interest and any outstanding penalties are covered by the arrangement).<\/p>\n\n\n\n The arrangement is based on your financial circumstances, so be prepared to give HMRC this information. You\u2019ll usually need to complete an income and expenditure assessment, which works out how much you can afford to pay and how much time you\u2019ll need to settle your debt.<\/p>\n\n\n\n HMRC won\u2019t typically ask you to pay more than 50 per cent of your disposable income.<\/p>\n\n\n\n Time to Pay is flexible, too. So if you have the money, you can pay more (and reduce your interest). But if your situation worsens, you can lengthen the arrangement.<\/p>\n\n\n\n You can set up a Self Assessment<\/strong> Time to Pay plan<\/strong> yourself online, if you owe up to \u00a330,000. Make sure you have your:<\/p>\n\n\n\n You\u2019ll also need to give details of any previous payments you\u2019ve missed.<\/p>\n\n\n\n HMRC will ask you:<\/p>\n\n\n\n You can spread your payment over 12 months by Direct Debit. You need to:<\/p>\n\n\n\n Interest will be applied to the outstanding amount. You can sign pay your tax bill by signing into your Government Gateway account<\/a>.<\/p>\n\n\n\n You might still be able to use Time to Pay if you owe more than \u00a330,000 or need more than 12 months, but you\u2019ll need to contact HMRC. First, try using HMRC’s chatbot<\/a> for support. If not you can call 0300 200 3401 (Monday to Friday, 8am-6pm).<\/p>\n\n\n\n You\u2019ll also need to contact HMRC if you owe other non-Self Assessment taxes.<\/p>\n\n\n\n Payment on account<\/a> is an advance HMRC tax payment. On 31 January, you pay any remaining tax for the previous tax year, as well as half of your estimated tax bill for the current tax year.<\/p>\n\n\n\n If someone is already in financial hardship, making a payment on account can make the situation worse. It also catches newly self-employed people<\/a> out, who are often faced with a tax bill that\u2019s much larger than expected.<\/p>\n\n\n\n It\u2019s useful to complete your tax return<\/a> as early as possible, so you know how much tax you need to pay, including your payment on account.<\/p>\n\n\n\n But if you can\u2019t afford payment on account and you set up an HMRC Time to Pay arrangement, you\u2019ll pay your bill in instalments<\/strong>.<\/p>\n\n\n\n Keep in mind that you can also apply to reduce payment on account<\/a> if you think your income will be lower next year. But if you reduce it so much that you underpay tax, HMRC will charge you interest and penalties.<\/p>\n<\/div>\n\n\n\n Make sure you get in touch with HMRC as soon as possible<\/strong>.<\/p>\n\n\n\n HMRC Time to Pay is reserved for those in financial difficulty, so if you really can\u2019t pay your bill and have no other options, don\u2019t delay.<\/p>\n\n\n\n If you need to speak to HMRC to set up a plan, you can use the Self Assessment payment helpline.<\/p>\n\n\n\n The number is 0300 200 3401<\/a> and it\u2019s open Monday to Friday 8am to 6pm<\/strong>. Ask about Time to Pay.<\/p>\n\n\n\n If you can\u2019t pay a different type of tax, look for contact details on any communication you\u2019ve had from HMRC about the bill. Failing that, check the phone numbers on the HMRC website<\/a>.<\/p>\n\n\n\n There’s also a chatbot<\/a> that’s available 24\/7 that can help point you in the right direction.<\/p>\n\n\n\n If you don\u2019t pay tax (and don\u2019t set up an HMRC Time to Pay arrangement) you\u2019ll get penalties. Example Self Assessment penalties include:<\/p>\n\n\n\n You can use an HMRC tool to estimate late Self Assessment penalties<\/a>.<\/p>\n\n\n\n HMRC can also take enforcement action to get the tax owed. The tax authority might take you to court<\/strong>, collect money directly from your bank account<\/strong>, or use debt collection agencies<\/strong>.<\/p>\n\n\n\n Image credit: Simply Business<\/em><\/p>\n\n\n\n Read more: <\/strong>HMRC penalties for Self Assessment<\/a><\/p>\n\n\n\n\n
\n
Time to Pay \u2013 can you pay HMRC in instalments?<\/h2>\n\n\n\n
How do I set up an HMRC payment plan?<\/strong><\/h3>\n\n\n\n
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\n
\n
Can\u2019t afford payment on account?<\/h2>\n\n\n\n
What if I can\u2019t pay my tax bill?<\/h2>\n\n\n\n
Time to Pay HMRC helpline<\/h3>\n\n\n\n
What happens if you don’t pay tax?<\/h2>\n\n\n\n
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