Pay in instalments

If you’ve already filed your Self Assessment tax return, you might be able to pay the bill in instalments.

What you need to do depends on whether you want to:

  • make payments against your latest bill
  • make advance payments against your next bill

If you cannot afford to pay your latest bill

You can set up a payment plan to spread the cost of your latest Self Assessment bill if all the following apply:

  • you owe £30,000 or less
  • you do not have any other payment plans or debts with HMRC
  • your tax returns are up to date
  • it’s less than 60 days after the payment deadline

You can choose how much to pay straight away and how much you want to pay each month. You’ll have to pay interest.

If you don’t keep up with your repayments, HM Revenue and Customs (HMRC) can ask you to pay everything you owe.

There are 2 ways you can set up a payment plan:

If you want to make regular payments in advance

You can set up a budget payment plan if you want to put aside money to cover your next Self Assessment tax bill.

This is different from payments on account, which you normally make once every 6 months towards your next tax bill.

The budget payment plan lets you:

  • decide how much to pay each week or month
  • stop paying for up to 6 months

You must be up to date with your previous Self Assessment payments.

Set up your plan using your HM Revenue and Customs (HMRC) online account. Go to the Direct Debit section and choose the budget payment option when filling in the Direct Debit form.

If the amount in your budget payment plan does not cover your next bill in full, you’ll need to pay the difference by the payment deadlines.