Self-assessment Enhanced Payment Plan

9th October 2020

In the latest financial assistance outlined by the Government, taxpayers under self-assessment will be able to spread the tax liabilities which become due at the end of January 2021 over the following 12 months. 

The tax liabilities to include within the total liability to be split are: – 

The payment on account for July 2020 which was deferred. 

Any tax owing for the 2019/20 tax year. 

The first payment on account for the 2020/21 tax year. 



To qualify for this scheme, the taxpayers tax liability from the above needs to be between £32 and £30,000. 

The scheme is now active for applications.  Applications are to be made via the website, searching for ‘enhanced payment plan’.  From the following results, locate ‘Self Assessment customers to benefit from enhanced payment plans’. 

On the following page, under the ‘further information’ section, click on ‘more about Time to Pay arrangements’.  Half-way down the page you will then find ‘set up a payment plan online’. 

Taxpayers will require a Government Gateway ID to make an application. 

For those of you without a Government Gateway ID, you can call the Self-assessment Payment Helpline on 0300 200 3822 to set-up the payment arrangement. 

The scheme is NOT interest-free and interest will be charged on the liability owing from 1st February 2021 until it has been repaid in full.  The scheme also has certain qualifying criteria: – 

  • All tax returns should be up-to-date. 
  • There should be no other tax debts owing to HMRC. 
  • There should be no other payment arrangements in place with HMRC. 
  • The payment plan must be set-up within 60 days of the due date of the debt (so as the tax becomes due on 31st January 2021, the closing date for applications will be 1st March 2021). 

 As ever, please be vigilant with regard to spam e-mails or phone calls claiming to be from HMRC.