Budget Payment Plan for Self Assessment
Did you know?
If your self assessment payments and returns are up to date you have the option to start a Budget Payment Plan. You can set up and manage a Budget Payment Plan using your HMRC online account and make regular advance payments by Direct Debit payments towards your next Self Assessment tax bill, reducing what they will have to pay on the 31 January and 31 July deadline.
You can decide the regular weekly or monthly amount they want HMRC to collect and choose to:
- amend your regular payment amount
- suspend payment for a period of up to six months
- cancel it at any time
Having a Budget Payment Plan doesn’t mean you can delay payment beyond the due date. You must ensure that any balance still owing (after subtracting your Budget Payment Plan payments) is paid off by the due date. Any balance still owed after the due date will attract interest.
This isn’t for everyone, but those who are taking dividends rather than salary and have their tax deducted through PAYE – this might be a good alternative to avoid the lump sum payments making it more manageable.
Log in to your HMRC online account, follow the link for Self Assessment, Choose “More Self Assessment Details” and then “Direct Debit Payment” from the menu.