Parliamentary Search

Written question asked by Luke Pollard (Labour) on Wednesday, 30 December 2020, in the House of Commons. It was due for an answer on Monday, 11 January 2021. It was answered by Jesse Norman (Conservative) on Thursday, 14 January 2021 on behalf of the Treasury.

Self-assessment: Coronavirus

Question

To ask the Chancellor of the Exchequer, what flexibility is provided in his plans to allow an additional 12 months for self-assessment taxpayers to pay their liabilities.

Answer

The Chancellor understands that many Self-Assessment taxpayers may find it difficult paying their Self-Assessment liabilities that become due on 31 January 2021, due to the impact of the coronavirus pandemic.

Therefore, on 1 October 2020, the Chancellor announced that from that date HMRC’s online payment service had been upgraded to enable more taxpayers to set up a Time To Pay instalment payment plan without the need to contact HMRC beforehand. The threshold for using this service was increased from £10,000 to £30,000. HMRC estimate that the increase in this threshold will enable 95% of the Self-Assessment liabilities becoming due on 31 January 2021 to be paid this way.

Those taxpayers with Self-Assessment liabilities in excess of £30,000 can still contact HMRC to set up a bespoke Time To Pay arrangement appropriate to their personal circumstances.

HMRC can be flexible with the duration of payment instalments. If a taxpayer needs longer than 12 months to settle their tax liabilities they are encouraged to contact HMRC in the usual way to agree a longer payment plan.

Secondary information

Type
Written question
Reference
133170
Session
2019-21
Subjects
Disease control Self-assessment Coronavirus
Link
View this Written question on www.parliament.uk