Setting up a payment plan with HMRC

Posted on 9th January 2024 by Streets -  Personal

Image to represent Setting up a payment plan with HMRC

The 31st of January is a key date for those of us who are registered for self-assessment. There are three deadlines:

  1. The closing date to file your 2022-23 tax return without incurring an initial £100 late filing penalty.
  2. The date by which any balance of tax, NIC, or student loan payback needs to be made for 2022-23.
  3. Due date for making the first payment on account for 2023-24.

What to do if you cannot afford to make these payments

HMRC will allow taxpayers who cannot meet these tax payments by 31st of January, to spread the cost by applying for a formal HMRC payment plan.

The instructions posted on the website are reproduced below:

Setting up a payment plan

To set up a payment plan you will need:

  • the relevant reference number for the tax you cannot pay, such as your unique tax reference number;
  • your UK bank account details - you must be authorised to set up a Direct Debit; and
  • details of any previous payments you have missed.

You may be able to set up a payment plan online, depending on which type of tax you owe and how much you owe.

If you owe tax from self-assessment

You can set up a self-assessment payment plan online if you:

  • have filed your latest tax return;
  • owe £30,000 or less;
  • are within 60 days of the payment deadline; and
  • do not have any other payment plans or debts with HMRC.

HMRC will ask you about your income and spending when you set up your plan.

No Advice

The content produced and presented by Streets is for general guidance and informational purposes only. It should not be construed as legal, tax, investment, financial or other advice. Furthermore, it should not be considered a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset. The information provided by Streets is of a general nature and is not specific for any individual or entity. Appropriate and tailored advice or independent research should be obtained before making any such decisions. Streets does not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of obtaining Streets' visual or audible content.


The content used by Streets has been obtained from or is based on sources that we believe to be accurate and reliable. Although reasonable care has been taken in gathering the necessary information, we cannot guarantee the accuracy or completeness of any information we publish and we accept no liability for any errors or omissions in material. You should always seek specific advice prior to making any investment, legal or tax decisions.

Expert insight and news straight
to your inbox

Related Articles

New employment protections

New legislation, including three Government backed cross party Acts, came into force from 6 April 2024. Pregnant women and new parents will now receive special treatment in a redundancy situation, as a suite of new laws are introduced - delivering

Rent a Room Scheme - another income stream

The rent-a-room scheme is a set of special rules designed to help homeowners who rent-a-room in their home to create a valuable tax free income stream. If you are using this scheme, you should ensure that rents received from lodgers during the current tax year do no exceed £7,500. ...

Assistance with debt management

Earlier this month, saw the 10th anniversary of the StepChange Debt Charity’s annual Debt Awareness Week. This is designed to shine a spotlight on the causes of problem debt. The focus on this year's campaign is looking at the main barriers to getting debt advice. This includes understanding that many ...

You might also be interested in...