Introduction
HM Revenue and Customs (HMRC) has introduced enhanced payment flexibility for Self Assessment customers, enabling them to spread the cost of their tax bills through the Time to Pay service. Almost 18,000 payment plans have been set up since April, ahead of the 31 January 2026 payment deadline.
The move aims to provide financial support to individuals facing challenges in settling their tax liabilities in one lump sum, particularly as the annual deadline approaches.
Payment flexibility for Self Assessment taxpayers
HMRC’s Time to Pay service offers Self Assessment customers the option to set up instalment plans, helping them manage their tax bills by spreading payments over a period that suits their financial circumstances.
Those with tax bills up to £30,000 can arrange plans online, without the need for direct contact with HMRC. As of 30 November 2025, there have been 17,955 arrangements set up under this scheme since the start of April.
Eligibility and application process
To use the Time to Pay facility, taxpayers must first file their Self Assessment return. Those with tax debts exceeding £30,000 or requiring an extended repayment period must contact HMRC directly.
Myrtle Lloyd, HMRC’s Chief Customer Officer, stated, “We’re here to help customers get their tax right. If you are worried about paying your Self Assessment bill, assistance is available. Our online payment plans offer financial flexibility and can be tailored to individual circumstances.” Timely filing remains essential to avoid penalties and secure a payment plan before the deadline.
Online support and guidance
Taxpayers are encouraged to submit returns early, allowing more time to understand their dues and explore payment options. Payments can be made through multiple methods, including the HMRC app and the GOV.UK website.
Online resources and video guides are provided to assist both new and returning filers. Early engagement is advised to reduce last-minute pressure, but tax due remains payable by 31 January unless a payment plan is in place.
Security and scam awareness
Individuals are urged to remain vigilant against scams designed to harvest personal or financial information.
HMRC advises customers to verify communications and never to divulge login credentials. Official guidance is available on GOV.UK to help taxpayers identify genuine correspondence and avoid fraudulent activity.
Simple Assessment explained
For those receiving a Simple Assessment letter, the deadline for payment is also 31 January 2026. These letters are issued to individuals with income tax liabilities not settled through Pay As You Earn (PAYE) for the 2024–25 tax year. Taxpayers who receive a Simple Assessment notification after 31 October 2025 will be given three months from the issue date to pay.
Payments may be made in full or via instalments provided the balance is cleared by the deadline, using online or app-based methods.
Final Summary
HMRC’s expanded Time to Pay arrangements are providing crucial support for taxpayers managing rising personal costs and financial uncertainty. By offering online and tailored payment options, the tax authority is aiming to help individuals meet their obligations with greater confidence and flexibility.
With new rules approaching for digital tax submissions and further support for specific groups, early engagement and awareness remain key for taxpayers. For those seeking clarity and updates on HMRC services or tax news, tools like the Pie app offer a resource for staying informed.
