From 1 October 2020, you can arrange to pay your Self-Assessment bill in instalments, via an online self-serve facility, instead of calling HMRC directly.

A Time to Pay Arrangement enables the cost of your tax bill to be spread into monthly payments, up to a 12-month period.

The online service can be used once your 2019-20 tax return has been completed, by setting up a direct debit to pay any tax that is due for payment on 31 January 2021.  This would include:

  • The second payment on account for the 2019/20 tax year (if deferred from 31 July 2020);
  • The balancing payment for the 2019/20 tax year, including both income tax and capital gains tax; and
  • The first payment on account for the 2020/21 tax year.

Interest will still be due on the tax that is paid late and will be applied to any outstanding balance from 1 February 2021.

Increase in the Time to Pay threshold

  • The online Time to Pay facility was previously available for paying tax liabilities up to £10,000; and
  • From 1 October 2020, the threshold to use the online service has been increased to £30,000.


To set up a Time to Pay arrangement, you must meet the following requirements:

  • There are no outstanding tax returns;
  • There are no other tax debts;
  • There are no other HMRC payment arrangements in place;
  • The Self-Assessment tax bill is between £32 and £30,000; and
  • It is no more than 60 days since the tax was due for payment.

If you do not meet all of these eligibility requirements, you may still qualify for Time to Pay, but will need to contact HMRC directly in order to agree an arrangement:

Self-Assessment Payment Helpline

Telephone: 0300 200 3822
Monday to Friday, 8am to 4pm

How to set up Time to Pay

M+A Partners are unfortunately unable to set up an online Time to Pay arrangement for our clients. This is because the arrangement must be set up directly by the taxpayer. To set up your Time to Pay arrangement, you will need your Government Gateway ID and can access the log in screen by clicking on “set up a Time to Pay Arrangement online” here .

If you do not have a Government Gateway account, then this can be set up by clicking on “Create sign in details” accessible via the same link.

Self-Assessment tax return deadline

No announcement has been made so far as to the postponement of the deadline for submission of 2019/20 self assessment tax returns. We are therefore working on the assumption that the Self-Assessment deadline for filing online tax returns will remain as midnight on the 31 January 2021 and will not be extended.

The M+A Team remains largely remote working, in accordance with government guidelines.  Due to the exceptional conditions we are currently working within, and to ensure the timely submission of your tax return, we are asking all clients to submit their tax return information to us by 23 December 2020, so that we can guarantee the submission of your tax return ahead of the 31 January 2021 deadline.

We are here to support you during these challenging times, and should you require any help or advice on the above please do get in touch with your usual M+A Partners contact or email