If you are struggling to pay your Self Assessment tax bill on time, don’t panic.
Even the most organised self-employed drivers can occasionally find themselves behind, especially in these times.
There are some simple steps you can take to make payment arrangements with HMRC and potentially avoid a penalty.
If you can’t pay your Self Assessment tax bill on time
If you know in advance you’ll be struggling to pay your Self Assessment tax bill by the deadline, you should contact HMRC to set up a Time To Pay Arrangement.
You won’t usually have to pay a penalty, provided that you let HMRC know and set up a payment plan before the deadline has passed.
However, you will have to pay interest on any tax that is paid late.
If the deadline has recently passed, then don’t panic.
You can usually set up a payment plan via the HMRC website up to 60 days after the payment deadline, provided that:
- you owe £30,000 or less
- do not have any other payment plans or debts with HMRC
- your tax returns are up to date
If you don’t meet the above criteria, or if it’s more than 60 days since your tax bill was due, you should call the Self Assessment helpline.
If you’re struggling to pay because of coronavirus
The government has launched a number of initiatives to help businesses that are struggling as a result of the coronavirus pandemic.
For example, if you’re self-employed and your business has been affected by coronavirus, you may be able to claim a grant through the Self-Employment Income Support Scheme(SEISS).
The final SEISS grant is now open for applications.
If you’re struggling to pay your Self Assessment tax bill as a result of coronavirus, you can contact HMRC’s dedicated Covid-19 helpline to get more information about what support is available.
You can find other help for self employed drivers in our Knowledge Base.