Budget Payment Plan for Self-Assessment Tax Payers

Posted on 16th February 2023 by Joanne Stoneman

HMRC provides Self-Assessment tax payers whose payments and returns are up to date, the option to start a budget payment plan.

HMRC provides Self-Assessment tax payers whose payments and returns are up to date, the option to start a budget payment plan.

A budget payment plan allows customers to make regular advance payments towards their next Self-Assessment tax bill. HMRC will collect payments by Direct Debit as instructed by the customer.

You can set up and manage their budget payment plan using their HMRC online account. You can:

  • decide the regular weekly or monthly amount they want HMRC to collect
  • choose to amend their regular payment amount
  • choose to suspend payment for a period of up to six months
  • cancel it at any time

The budget payment plan does not mean you can delay payment beyond the due date. You will need to ensure that any balance still owing (after subtracting the budget payment plan payments) is paid off by the due date. Any balance still owed after the due date will become liable for interest.

If you think you would prefer to pay this way, please start a budget payment plan. Making regular payments reduces what you will have to pay on 31 January and 31 July deadline. See the following link for more guidance.

Pay your Self Assessment tax bill: Pay weekly or monthly - GOV.UK (www.gov.uk)