HMRC Payments in January 2021

Hazel Burt | 25 January 2021

HMRC Payments in January 2021


The blog was written at Thursday 7th January, updated 25 January and 23rd March.


1st April deadline for payment plan set up

Self Assessment taxpayers that wish to set up a payment plan, and avoid paying a 5% late payment penalty charge, must do so by midnight on 1 April 2021. Please see details below for setting up your payment plan.

HMRC Payments in January 2021 and 'Time to Pay' arrangements

With the HMRC Self-Assessment deadline almost upon us (31st January remember!) many people will have HMRC payments due soon, but what you may not know is that there could be options available if you are NOT able to pay taxes right now.

Below we've tried to summarise these as best we can, and outlined the process you should go through depending on what situation you are in.  

And please note, whilst on 25th January HMRC announced that there would not be late penalties for those unable to file by 31 January (provided, that is, that you file by the final deadline of 28 February) payment ARE STILL DUE from 31 January even if you file later.  This means that interest will be charged from 1 February on any outstanding liabilities - unless of course you progress with something outlined further below.


Owe Self-Assessment tax bill, LESS THAN £30,000?

HMRC are offering a 'payment plan' option for your latest Self-Assessment tax bills (ie becoming due 31 January 2021), which you can set-up online WITHOUT having to call or email HMRC.  But to qualify for this you do need to meet certain criteria, namely:

  • you must owe £30,000 or less
  • you can't have any other payment plans or debts with HMRC already
  • your tax returns must be up-to-date (you'll need to file your 2019-20 return ASAP and before 31st January 2021)
  • you must set this up within 60 days from the payment deadline.

What do I need to do?


Owe Self-Assessment tax bill, MORE THAN £30,000?

A 'payment plan' may still be an option if you do owe more then £30,000, however you cannot set this up online. 

What do I need to do?

  • Instead you will need to call HMRC's Self Assessment Payment Helpline on: 0300 200 3822.  Lines are open Monday to Friday, 8am to 4pm - but be ready to be kept on-hold as lines are busy.  Be sure to have your HMRC details ready for verification.


Can't pay any other tax, DUE TO COVID-19?

Firstly if you have already arranged with HMRC to delay Self Assessment payment on account which was due in July 2020, then these payments WILL become due on 31 January 2021.  If that's ok you don't have to do anything.

  • If this is going to be an issue you should contact HMRC directly on their Self Assessment Payment Helpline on: 0300 200 3822.

If you are self-employed and your income has been impacted by COVID-19, you may be eligible for grant support.

If you cannot pay any other tax bills due to COVID-19, then HMRC have a dedicated helpline - this operates via Webchat and Telephone.


Can't pay any other tax, NOT as a result of COVID-19?

HMRC may still offer 'Time to Pay' arrangements with you if you cannot pay taxes in full for any other reason, meaning they will agree that you pay in regular instalments instead.

What do I need to do?

  • If you've already received a payment demand (i.e. tax bill or letter threatening legal action), you need to call the HMRC office that sent you the letter - the details will be on there. 
  • If you've not yet received a bill or letter, you can contact HMRC's Payment Support Service on: 0300 200 3835. Lines are open Monday to Friday, 8am to 4pm, and again have your details ready for verification.


Can French Duncan help me do all this?

We're always happy to help clients, but sadly we are NOT able to organise these 'Time to Pay' arrangements with HMRC - they must be negotiated and agreed directly with the tax payer.  So you will need to contact HMRC directly.

If you are still struggling financially, and you're unsure delaying HMRC payments will be enough - whether for you personally or your business - then please do get in touch with us ASAP via, and we'll arrange someone to call you to see how else we might be able to assist.  They key in this instance is that you seek advice as soon as possible.


Other COVID-19 Information:

Full details of how we can help you around COVID-19 / Coronavirus is available on our special page ( which you can access by clicking here.





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