HMRC issues new update for people due to file tax return before deadline next month

Linda Howard
·3-min read
AN anxious looking woman is sitting typing on a laptop in a kitchen setting while a man in the background is standing reading something on his mobile phone
-Credit: (Image: Getty Images)


Christmas preparations are well underway in many households across the country, however, considering financial commitments may not be high up on the festive agenda this month. HM Revenue and Customs (HMRC) is reminding people who pay tax by Self Assessment of the opportunity to spread the cost of their bill.

More than 15,000 Self Assessment customers have already set up a Time to Pay payment plan for the 2023 to 2024 tax year to help spread the cost, and there is still an opportunity for more people to do so before the deadline on January 31, 2025. HMRC offers these payment plans to support customers unable to pay their tax bill in full and looking to manage their payments over regular monthly instalments.

READ MORE: DWP confirms Christmas and New Year pay date changes for people on State Pension or benefits

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Anyone who is unable to pay their tax bill in full, owes less than £30,000 and is eligible, can quickly and easily apply online without the need to contact HMRC directly. Those that owe more than £30,000 are still able to apply but would need to contact HMRC.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We’re here to help customers get their tax right and if you are worried about how to pay your Self Assessment bill, help and support is available.

“Customers can set up their online payment plan to suit their own financial circumstances and can spread those payments across a maximum of 12 months. It is a valuable option for someone needing extra flexibility in meeting their tax obligations.”

It’s important to be aware taxpayers must file their Self Assessment tax return before setting up a Time to Pay arrangement.

There are many ways in which people can pay their Self Assessment tax bill, including paying through the free and secure HMRC app or online at GOV.UK where a full list of payment options can also be found.

There is also a video on YouTube that explains a customer’s Self Assessment tax bill and the different ways to pay.

HMRC is encouraging people to be prepared and have all the information they need ready to file their Self Assessment tax returns early, so they can avoid any last-minute stress and know what they owe sooner. HMRC has a range of online help and support and YouTube videos to assist anyone completing their return, including first-time filers.

Customers setting up a time to pay arrangement need to budget accordingly to ensure regular monthly payments can be made. Any missed payment will incur interest as well as a penalty.

HMRC recommends anyone who regularly sells goods or provides a service through an online platform to find out more about selling online and paying taxes.

HMRC said the information on GOV.UK will help them decide if their activity should be treated as a trade and if they need to complete a Self Assessment tax return.

Simple Assessment

HMRC is also reminding anyone who received a Simple Assessment letter the deadline to pay any tax owed is also on January 31, 2025. Simple Assessment customers do not need to register and complete a tax return.

Simple Assessment letters were issued to those who have unpaid Income Tax from the 2023 to 2024 tax year that cannot be collected via Pay as You Earn (PAYE) - by an employer or pension provider.

Customers who receive a Simple Assessment on or after October 31, 2024 for tax owed during 2023 to 2024 tax year will have three months from the date of their assessment to pay their tax bill.

Both Self Assessment and Simple Assessment payments can be made in full, or in smaller amounts if the balance is cleared before the deadline. Payments can be made on GOV.UK or through the HMRC app.

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