HMRC’s time to pay facility offers a structured monthly repayment arrangement to taxpayers struggling
to settle an outstanding tax liability in full, on time.
Where criteria are met, this can now be arranged online for an employer’s PAYE liability, removing the
need to phone HMRC. This can already be done for income tax self assessment.
HMRC’s approach
HMRC always tailors time to pay arrangements to the circumstances of the individual taxpayer. This
means monthly repayments are worked out with reference to your income and expenditure, and HMRC is open
to renegotiating repayments if circumstances change.
Whilst HMRC is committed to trying to help taxpayers pay their outstanding liabilities, it also has to
be convinced that there is a realistic chance of repayment. If it thinks that someone is unlikely to be
able to keep up repayments, it will probably refuse time to pay.
Who can use the online service?
The online option can be used if:
- you owe less than £15,000
- are within 35 days of the payment deadline
- can pay the debt off within the next six months
- don’t have any other payment plans or debts with HMRC
- your employer’s PAYE submissions have been submitted
- any Construction Industry Scheme returns have been submitted.
It’s important to note that there is still interest to pay on outstanding tax, even where a time to pay
arrangement is in place.
How to do it
To start the procedure off, follow the links from the ‘If you cannot pay your tax bill on time’ page on
gov.uk. You need your employer PAYE reference number to hand, plus your bank account details and
details of any payments missed already.
If online isn’t an option
If you can’t tick all the boxes for the online criteria, time to pay is still an option. It’s simply
that there is a different route to apply. Here you should use either HMRC webchat, signed on the
‘Payment problems’ page; or the Payment Support Service phone line. This is available on 0300 200 3835
between 8am and 6pm, Monday to Friday.