- Shepherd Partnership
HMRC Budget payment plan
If you like the idea of spreading your tax bill, self-assessment taxpayers whose payments and returns are up to date have the the option of starting a budget payment plan. However, please note that this service is for payments in advance, not to collect arrears of tax.
This service allows you to make regular payments towards your next Self Assessment tax bill. HMRC will collect payments by Direct Debit as you have instructed through a budget plan set up through your HMRC online account.
Through this you can:
decide the regular weekly or monthly amount you want HMRC to collect
choose to amend your regular payment amount
choose to suspend payment for a period of up to six months
cancel it at any time
You would need to ensure that any balance still owing (after subtracting budget payment plan payments already paid) is settled by the due date. If there is any balance still owed after the due date it will become liable for interest and potentially penalties too.
Making regular payments reduces what you will have to pay on 31 January and 31 July deadlines.
If you would like to find out more, further information cane be found on the ‘Pay weekly or monthly’ page.