If you cannot pay your tax bill on time
Setting up a payment plan
You may be able to set up a payment plan to pay your overdue tax bill in monthly instalments.
To set up a payment plan you’ll need:
- the relevant reference number for the tax you cannot pay, such as your unique tax reference number - you can usually get this from any letters HM Revenue and Customs (HMRC) has sent you
- your UK bank account details - you must be authorised to set up a Direct Debit
- details of your income and spending, or your company’s income and spending if you owe company tax
If your bill is not overdue and you want to make weekly or monthly payments towards your next Self Assessment tax bill, you may be able to set up a Budget Payment Plan instead.
Set up a payment plan online
Use this service to check if you’re eligible for and to set up a payment plan online.
If you cannot set up a payment plan online
You’ll need to tell HMRC:
- if you can pay in full
- how much you can repay each month
- if there are other taxes you need to pay
- how much money you earn
- how much you usually spend each month
- what savings or investments you have
Contact HMRC to set up a payment plan.
If you have savings or assets, HMRC will expect you to use these to reduce your debt as much as possible.
If you’ve received independent debt advice, for example from Citizens Advice, you may have a ‘Standard Financial Statement’. HMRC will accept this as evidence of what you earn and spend each month.
If your company is in tax debt
HMRC will ask you how you’ll pay your tax bill as quickly as you can. They will ask questions about your proposal to make sure it is realistic and affordable for you.
You must reduce your debt as much as possible before setting up a payment plan. You can do this by releasing assets like stock, vehicles and shares.
HMRC may ask company directors to:
- put personal funds into the business
- accept lending
- extend credit