can you pay tax monthly

Can Self-Assessment UK Tax be Paid in Installments?

28/11/2022tax , Tax Issues , Tax News and Tips

If you are the one who is wondering how to make HMRC agree upon the monthly instalments of your tax bills because you have a valid reason that is hindering your tax payments. The frequently asked question in this regard is can you pay tax monthly? Well, this totally depends on the kind of tax that you have to pay, it will help decide HMRC the possibility of the tax payment plan in instalments. The possible option that you have is to use the gateway account to set up the self-assessment payment plan.

Anyone around you who is struggling with tax payments can be suggested to find the solution on this page. This article will help them to understand the possibility of paying the tax bills in instalments, what are the requirements of this procedure, how will HMRC help them, and how long this payment plan lasts.


Seek no further help after contacting CruseBurke’s team of experts and advisors about whether can you pay tax monthly with peace of mind and within your budget.


Can You Pay Tax Monthly in Instalments?

It is possible to use your government gateway account for the self-assessment payment plan. This is also known as the time-to-pay plan. The following salient features are important to consider for this procedure:

  1. You can pay within a time limit of 12 months or less than that.
  2. There should be 60 days to reach the deadline at least.
  3. The payment you owe must be below the figure of £30,000.
  4. You must have filed the recent tax returns successfully.


What Do You Require to Provide for Paying the Tax Monthly?

To begin the procedure you can get in touch by using the helpline of self-assessment. This is the second option if you fail to do the self-assessment plan online. This mostly happened for the people who owe more than the amount £30,000 or need a very long period to pay the amount. When finally the time comes to set the plan, you will require a few things that are listed below:

  1. The information regarding the payments that you have missed in the past.
  2. The details of your bank account.
  3. In case you are carrying out a business, the VAT registration number will be required.
  4. The reference number of the tax bill you have not paid.

Moreover, HMRC will require to gather information about a few things that might include the following:

  1. The amount of your savings and any kind of investment that is in the process currently.
  2. The usual monthly spending patterns.
  3. The amount of money that you earn.
  4. Whether there are any other kinds of taxes that are unpaid.
  5. Whether you are in a position to pay full tax.
  6. How much amount of money you will be able to pay in one month?

Moreover, HMRC will also check what kind of assets and property you own and they will suggest you use your assets to pay as much as possible.


How will HMRC Help to Work Out Your Instalment Plan?

How much amount you will pay in one instalment monthly will depend on the amount you have after the rent and other utility bills are paid. The subscriptions and the fixed outgoing of money will also be taken into serious consideration. In usual practice, HMRC asks you to pay half amount of what you are left with after paying all the monthly bills and other subscriptions to pay the instalment every month. For people who are getting the pension, HMRC will consider this amount of pension as income in this procedure.

However, this amount will not be a part of the savings. If you agree upon paying more than what HMRC has decided for your instalment every month. This will only work for your betterment. As paying early means that you are paying less amount of money. This is because of the fact that the interest is not added to the monthly instalments you are paying.


For How Long Does the Payment Plan Lasts?

Usually, there is no set limit to the last payment plan. This will depend on the amount of money that you can afford to pay every month and also the amount of money that you owe to HMRC as tax bills. The payment is flexible. If you have started to earn more and want to increase your monthly payment amount, you can simply inform by getting in touch with HMRC. The period of your payment plan can easily go longer or shorter. In case you do not inform HMRC about your circumstances changes, they will get in touch with you and discuss the recent changes and how can it affect your payment plan of instalments.


The Bottom Line

Now that you have gathered a fair amount of information about whether can you pay tax monthly, we can bring the discussion towards wrapping up. If you are stuck in a financial struggle and cannot afford to pay the tax bills, HMRC is flexible enough to offer generous payment plans. Consider making a short-duration plan to avoid paying the interest amount. This will help you to clear the due payment early as well. However, there are a few conditions to be eligible for this plan. We hope these few minutes of reading will help you to develop a better understanding of paying taxes in monthly instalments and the payment plan of HMRC.


Are you stressed about your query ‘can you pay tax monthly?’ Feel free to contact our team of tax advisors and accountants to help you find accurate information and guidance.


Disclaimer: All the information provided in this article on whether can you pay tax monthly, including all the texts and graphics, is general in nature. It does not intend to disregard any of the professional advice.

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