HMRC Time to Pay: How to Spread Your Self Assessment Bill
If you cannot afford to pay your Self Assessment bill by 31 January, do not ignore it. HMRC's Time to Pay service lets you spread the payment over time. Here is how to use it.
What Is Time to Pay?
Time to Pay (TTP) is an arrangement with HMRC to pay your tax bill in monthly instalments rather than a lump sum. It is available for Self Assessment bills that you genuinely cannot pay in full by the deadline.
How to Set It Up
Online (for bills up to £30,000): Log in to your Government Gateway account and set up a payment plan online. You can choose how many months to spread the payment over (up to 12 months).
By phone (for larger amounts or more than 12 months): Call HMRC's Self Assessment helpline to discuss a bespoke arrangement. Be prepared to explain your financial situation and propose a repayment schedule.
When to Apply
Apply before the 31 January deadline if possible. Setting up a TTP arrangement before the due date may help you avoid late payment penalties (though interest still applies).
What It Costs
- Interest is charged on the outstanding balance at the Bank of England base rate plus 2.5%
- Late payment penalties may be avoided if you set up the arrangement before the deadline
- There is no fee for the arrangement itself
What HMRC Needs
To agree a TTP arrangement, HMRC typically needs to know:
- How much you owe
- Why you cannot pay in full
- How much you can afford to pay monthly
- Whether you have other debts
- Your expected income over the coming months
Tips
- Contact HMRC as early as possible — the closer to the deadline, the less flexibility they may offer
- Be honest about your financial situation
- Propose a realistic repayment plan — do not overpromise and then fail to keep up
- Set up a Direct Debit for the monthly payments so you do not miss any
- Budget for next year's bill throughout the year to avoid needing TTP again
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Tax & Compliance Specialists
Our tax specialists have decades of combined experience in UK sole trader and small business taxation, MTD compliance, and HMRC submissions. All content is reviewed against current HMRC guidance before publication and updated quarterly to reflect legislative changes.
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