HMRC has the following guidance on its website re Income Tax Payments due 31 Jan 2021 -
"Customers who wish to set up their own self-serve Time to Pay arrangements must meet the following requirements:
they need to have no: a) outstanding tax returns b) other tax debts c) other HMRC payment plans set up d) the debt needs to be between £32 and £30,000 e) the payment plan needs to be set up no later than 60 days after the due date of a debt."
Does this mean that a taxpayer may not defer both the VAT payment due last April AND his Self-Assessment Bill due 31 January 2021? If there is further on HMRC's website I have not been able to spot it.
Replies (3)
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Maybe, but maybe not, I would suggest to those in need of a time to pay arrangement that they contact HMRC and ask.
It is my understanding that Time to Pay relates to Income Tax only. The VAT scheme will be separate with details of how to apply being announced in January. Postponed VAT can be paid from April 2021 to March 2022.
"Customers who wish to set up their own self-serve Time to Pay arrangements"
It means they can't set it up themselves using online services and must contact HMRC to discuss.