I am unable to pay my Income Tax bill – What can I do?

Sometimes, paying your tax bill on time can be difficult when costs are high.

If you miss a payment deadline or think you will miss one because you are unable to pay your tax bill, you must contact HM Revenue & Customs (HMRC) as soon as possible.

You may have the option to set up a ‘Time to Pay’ arrangement – a payment plan agreed with HMRC allowing you to pay your tax over a longer period.

You can do this online through your Government Gateway portal if you meet certain criteria:

• You have filed your latest tax return
• It is within 60 days of the payment deadline
• You owe £30,000 or less
• You do not have any other debts or payment plans with HMRC

You will have to contact HMRC directly if you do not meet these criteria.

You will be asked about your spending and income when you set up the payment plan.

If HMRC thinks you will not be able to make your payments according to the plan, you may be required to pay your bill in full.

Remember, you may be charged a penalty if you are late paying, which can be appealed if you have a ‘reasonable excuse’, such as issues with the online portal, serious illness or bereavement, or software failure.

Keeping track of the deadlines

You will have several other deadlines each year that you need to meet to remain compliant with legislation around Income Tax Self-Assessment (ITSA), including:

• Telling HMRC that you need to submit a tax return by 5 October (if you have not done one before)
• Submit a paper tax return by 31 October (if applicable)
• Submit an online tax return by 31 January
• Pay your tax by 31 January

These deadlines relate to the previous financial year, i.e. online tax returns and payment for the 2023/24 financial year are due by 31 January 2025.

One of the easiest ways to keep track of your Income Tax payments (as well as any other tax liabilities) is with the help of a qualified accountant.

If you need advice on reporting and paying ITSA, speak to one of our experts today.