HMRC time to pay: managing your tax bill
 As the Self Assessment deadline approaches on 31 January 2026, many taxpayers are feeling the pressure of balancing festive spending with looming tax obligations.
Those that submitted their self-assessment tax returns early will already have received 31 January 2026 payment reminders. However, HM Revenue & Customs (HMRC) understands these challenges and offers a practical solution: the time to pay service. This facility allows individuals and businesses to spread the cost of their tax bill through manageable monthly instalments, helping avoid late payment penalties and financial stress.
At RPGCC, we are advisers with specialist teams in UK and international tax compliance and planning, as well as VAT advisory services. Our experts work closely with clients to ensure they meet their tax obligations efficiently while helping them to take advantage of HMRC’s flexible payment options where needed and applicable.
What is HMRC Time to Pay?
HMRC’s Time to Pay service is designed for taxpayers who cannot settle their tax bill in full by the deadline. Rather than facing penalties you can arrange a payment plan that suits your circumstances. For Self Assessment customers, this means spreading the cost of your tax bill over monthly instalments.
Since 6 April 2025, nearly 18,000 payment plans have been set up using HMRC’s online service. This demonstrates how popular and effective the scheme is for those managing cash flow during challenging times.
Who can use time to pay?
- Self Assessment taxpayers who have filed their return and owe tax.
- Those with tax bills of up to £30,000 can set up a plan online without contacting HMRC directly.
- If your bill exceeds £30,000 or you need a longer repayment period, you can still apply by speaking to HMRC.
It’s important to note that you must file your Self Assessment return before arranging a Time to Pay plan. Acting early gives you more flexibility and peace of mind.
Other payment options
If your Self Assessment bill is less than £3,000 and you also receive PAYE income, you can request HMRC to collect the amount through your tax code. This option spreads the cost across your salary or pension payments, reducing the need for a lump sum payment.
Why act now?
The deadline to file and pay is 31 January 2026, but waiting until the last minute can lead to unnecessary stress. Filing early means you know what you owe sooner and can plan accordingly. Even if you file now, you don’t have to pay until the deadline—but you’ll have the option to set up a Time to Pay arrangement well in advance.
How RPGCC can support you
At RPGCC, we do more than just help you file your tax return. Our team provides:
- Guidance on Self Assessment and Simple Assessment obligations
- Strategic planning for UK and international tax compliance
- VAT advisory services for businesses navigating complex rules
We ensure you stay compliant while managing your cash flow effectively. Whether you’re a sole trader, landlord, or high-income individual, our advisers can help you explore all available options, including coding out smaller bills through PAYE or setting up structured payment plans.
Stay Safe and Informed
HMRC warns taxpayers to be cautious of scams especially in the run up to Christmas and the 31 January tax return filing deadline. Always use official channels and never share your HMRC login details.
If you need help with your self-assessment tax or indeed any area of tax planning, Contact us today. Our experienced UK tax advisers are here to make tax compliance stress-free and tailored to your needs.
Adam Thompson, Private Client Tax Partner
If you would like to speak to Adam, or any member of our private client tax team about anything contained in this article please contact us or telephone us on 020 7870 9050, a member of our team is waiting to assist you.
