Self-Assessment: A Reminder That You Can Spread Your Tax Payments

With the festive season underway and household budgets feeling the pressure, many self-employed individuals and business owners are starting to think ahead to their next Self-Assessment tax bill. If paying your tax in one lump sum feels challenging, it’s helpful to know that there may be an option to spread the cost.

Although the deadline to file your Self-Assessment tax return and pay any tax due isn’t until 31 January 2026, acting early can make the process far smoother, particularly if you think you may need extra time to pay.

HMRC’s Time to Pay Service

HM Revenue & Customs (HMRC) offers a Time to Pay service that allows eligible Self-Assessment taxpayers to spread their tax bill through monthly instalments. This option becomes available once your tax return has been filed.

Since 6 April 2025, almost 18,000 taxpayers have already arranged a payment plan, making use of this flexibility to manage their tax liabilities without falling into late-payment penalties.

Key Points to Be Aware Of

If you are considering a Time to Pay arrangement, there are a few important points to keep in mind:

• If you owe £30,000 or less, a payment plan can usually be set up online, without needing to speak directly to HMRC.

• Your tax return must be filed before you can apply for Time to Pay.

• The amount you pay each month will depend on your individual financial circumstances.

• Interest will still be charged on outstanding balances, so paying as quickly as possible remains beneficial.
  

The Value of Planning Ahead

HMRC’s Time to Pay service can offer welcome breathing space, but it works best when it is considered early. Understanding your likely tax position in advance gives you more control, more options, and less stress as the January deadline approaches.

If you’re unsure how this could apply to you, would like help planning for your January tax bill, or want to understand what a Time to Pay arrangement might look like in practice, please get in touch with SJC, Chartered Accountants. We can help you review your position early and put a plan in place that works for you and your business.