There is no change to qualifying criteria for self assessment taxpayers with the £30,000 limit on debt still in place, a figure which has not changed in line with inflation since 2020 when the amount was hiked from £10,000 to help people during the pandemic.
The ceiling for businesses owing PAYE and VAT bills is £100,000 with the option to sign up online as long as the plan is to pay off the debt within the next 12 months and the debt is less than five years old. Usually, HMRC expects 50% of disposable income after bills and housing costs to be paid into the time to pay arrangement.
It is possible to set up a payment plan online for self assessment, PAYE and VAT bills, although the guidance states that taxpayers ‘may be able to’ do this, so in some instances it will be necessary to talk to HMRC to pay a tax bill in instalments.
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