HMRC has confirmed that, as of 13 January 2021, almost 25,000 individuals due to submit and pay their Self- Assessment tax returns had set up online payment plans in order to spread the amount of tax they owe over 12 monthly instalments. This equates to a figure of £69.1 million. In October 2020, the threshold for the self-serve Time to Pay arrangements increased from £10,000 to £30,000. This was in order to support both individuals and businesses who have been negatively impacted by coronavirus. Upon completion of their 2019-20 tax returns, once the amount of tax owed is known, individuals can use the self-serve facility to manage the cost of their tax bills and to set up monthly direct debits.
More information on Payments on Account is available here.
The Interim Director General for Customer Services at HMRC, Karl Khan, said:
“We know the past year has been tough for many businesses and self-employed people, which is why we’re helping them spread the cost of their tax bill into monthly payments.
Self Assessment customers can use the self-serve Time to Pay facility for amounts up to £30,000 with almost 25,000 customers already benefiting from the service.”
GOV.UK can be used to apply for payment plans, but those wishing to use the service must meet the following criteria:
• They must have no outstanding tax returns, other tax debts or other HMRC payment plans in place • The debt needs to be in the range of between £32 and £30,000 • The payment plan must be set up by no later than 60 days after the due date of the debt
Taxpayers who make Payments on Account, who are aware that their bill is going to be less than in a previous tax year, are able to reduce their payments. Further information on this is available at GOV.UK.
As always, there is a reminder to be alert, and wary of scams, particularly copycat HMRC websites and phishing scams. Similarly, if calls, emails or texts purporting to be from HMRC are received claiming to provide a tax refund or stating that tax is due, then individuals should refer to guidance on how to recognise genuine HMRC contact.
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HMRC publishes new video series to aid understanding of compliance checks 20 January 2021
HMRC has produced a series of videos, designed to help its customers in understanding the processes surrounding compliance checks. The videos should assist HMRC customers in understanding what they can expect in relation to these checks.
There are four videos available, and they cover the following:
What to expect from a compliance check
•
• The purpose of compliance checks and how they work • Penalties – why penalties are charged and what can be done about them • How to make an appeal against a HMRC decision
The videos were assembled using input from stakeholders, who represent HMRC customers.
CIPP comment
The CIPP would love to hear any feedback you have on the content or design of the compliance check videos, which we can send on to HMRC. Please send any comments you may have to the Policy team, at Policy@cipp.org.uk. Thank you in advance.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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