Previously the Time to Pay plan could be used to set up instalment arrangements for paying tax liabilities up to £10K, however, since 1 October it has been officially increased.
The increase aims to help firms spread the cost of their tax bill into monthly payments. The deadline to complete Self-Assessment tax returns for 2019 to 2020 is 31 January 2021.
The increased self-serve Time to Pay limit of £30k follows chancellor Rishi Sunak’s announcement on 24 September to increase support for businesses and individuals through the fallout from the pandemic.
Customers who need longer than 12 months to settle their tax liabilities have been told to contact HMRC in the usual way.
Jesse Norman, financial secretary to the Treasury said: “We are supporting jobs by giving more breathing space to up to 11 million Self-Assessment taxpayers when managing their tax affairs.
“Enhancing Time to Pay should ease the financial burdens and protect the livelihoods of these taxpayers, as they navigate the months ahead”.
Source – Accountancy Today