How to Pay Your Self Assessment Tax Return

A guide to payment methods and setting up a payment plan

Self Assessment tax is normally due on 31 Jan each year with additional payments on account due on 31 Jul. If you want to pay your bill in full, HMRC lists all available payment methods here:

Pay your Self Assessment tax billGOV.UK

If you cannot pay in full, you may be able to set up a payment plan with HMRC. This guide explains the current options.

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Setup an Online Payment Plan

HMRC offers Time to Pay arrangements that allow you to spread your tax bill over monthly instalments. Many taxpayers can set these up online without speaking to HMRC.

Eligibility for an Online Payment Plan

You can normally set up a plan online if:

• You owe £30,000 or less

• Your tax return for the year is already filed

• You have no other active payment plans with HMRC

• You set up the plan within 60 days of the payment deadline

If all conditions are met, HMRC typically auto-approves the arrangement.

How to Set Up a Plan Online

1. Log into your HMRC personal tax account

2. Go to Self Assessment

3. Select Set up a payment plan

4. HMRC will show the maximum number of months available

5. Choose your monthly amount and payment date

6. Enter your Direct Debit details and confirm

Approval is immediate, and no phone call is required.

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Contact HMRC for a Custom Payment Plan

If you owe more than £30,000 or need a longer repayment period, you will need to speak with HMRC to request a managed arrangement. Head here for contact details:

If you cannot pay your tax bill on timeGOV.UK

How it Works

1. Call HMRC and explain that you want to set up a Self Assessment Time to Pay arrangement.

2. HMRC will ask for a short breakdown of your financial position so they can assess affordability.

3. They will then suggest or agree a monthly repayment amount and confirm the plan.

Information HMRC Usually Asks For

• Your income

• Your essential monthly outgoings

• Savings or cash balances

• Other debts or liabilities

• A realistic monthly amount you can afford

What to Expect

• HMRC may approve the plan immediately if the proposal is reasonable.

• They may ask for evidence if the amount owed is large or the case is unusual.

• Interest continues to accrue until the balance is paid.

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What Happens After a Plan Is Set

• Interest continues to accrue daily until the balance is paid

• HMRC will not take enforcement action as long as payments are maintained

• Future Self Assessment bills are not added automatically, so you must pay future liabilities separately or arrange a new plan when due

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If You Miss the Deadline Without a Plan

If you neither pay in full nor set up a payment plan:

• Interest starts immediately after the due date

• Late payment penalties may apply

• HMRC may send payment demands or escalate the debt

If you think you will struggle to pay, it is far better to set up a plan before the deadline.