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Self-Assessment Tax – Time to Pay Extension

Time To Pay extension for Self-Assessment


In light of the impact of COVID-19, taxpayers who are unable to pay their self-assessment tax in full by 31 January 2021 now have the option to pay by instalments over an additional 12 months up to 31 January 2022.


To take advantage of the extension to HMRC’s online Time to Pay service, you must meet the following criteria:

  • The outstanding self-assessment tax liability must be less than £30,000 (and more than £32).
  • All tax returns should be up to date (with no outstanding returns to be submitted).
  • You must not have other tax debts outside of self-assessment (i.e. VAT, PAYE, CIS etc.)
  • You cannot have other HMRC payment plans set up (as above).
  • The tax payment should be no more than 60 days overdue.


Late payment penalties are charged when tax remains unpaid 30 days, 6 months and 12 months after its due date for payment. You can avoid them if you enter into a Time to Pay arrangement before they become due and you pay all the tax owing under that arrangement on time.

Please note that interest is still payable on the tax owed under Time to Pay arrangements. This interest will be applied to any outstanding balance from 1 February 2021.

For taxpayers who do not meet the above requirements or are looking to arrange for an agreement in excess of 12 months, you will need to call HMRC to negotiate an appropriate payment plan rather than apply using the online service.

If not completed already, the next step will be to prepare and submit your 2019/2020 tax return as soon as possible. We can then check your eligibility to benefit from this announcement.

We will confirm with those who have payments to make if you have the option of using the online self-serve Time to Pay facility through GOV.UK

This is an opt-in scheme, therefore if you wish to apply for a Time to Pay arrangement, please create and/or sign in to your personal tax account (once your tax return has been submitted and processed by HMRC) to access the online service.


We would also like to take this opportunity to remind you to be cautious of scams via telephone and email claiming to be from HMRC, offering to set up payment plans for any tax owed or threatening action against you if you don’t provide payment details.


MATCH is working hard to keep on top of all the latest news and government support so, as always, feel free to get in touch if you have any queries and we’ll be happy to help.

Lastly, please add our domain (@matchaccounting.co.uk) to your email’s safe senders list to ensure you receive important information and updates from us in the coming weeks. Alternatively, you can follow us on Facebook.


MATCH Accounting Limited