If you cannot pay your tax bill on time

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Setting up a payment plan

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
  • your UK bank account details - you must be authorised to set up a Direct Debit
  • details of any previous payments you’ve missed

You may be able to set up a payment plan online, depending on which type of tax you owe and how much you owe.

If you owe tax from Self Assessment

You can set up a Self Assessment payment plan online if you:

  • have filed your latest tax return
  • owe £30,000 or less
  • are within 60 days of the payment deadline
  • do not have any other payment plans or debts with HMRC

HMRC will ask you about your income and spending when you set up your plan.

If you owe employers’ PAYE contributions

You can set up an employers’ PAYE payment plan online if you:

  • have missed the deadline to pay an employer PAYE bill
  • owe £100,000 or less
  • plan to pay your debt off within the next 12 months
  • have debts that are 5 years old or less
  • do not have any other payment plans or debts with HMRC
  • have sent any employers’ PAYE submissions and Construction Industry Scheme (CIS) returns that are due

If you owe tax from VAT

You can set up a VAT payment plan online if you:

  • have missed the deadline to pay a VAT bill

  • owe £100,000 or less

  • plan to pay your debt off within the next 12 months

  • have a debt for an accounting period that started in 2023 or later

  • do not have any other payment plans or debts with HMRC

  • have filed all your tax returns

You cannot set up a VAT payment plan online if you’re in the Cash Accounting Scheme, Annual Accounting Scheme, or you make payments on account.

If you cannot set up a payment plan online

You’ll need to contact HMRC.

They will ask you:

  • 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

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 to propose 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
View a printable version of the whole guide

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