How to set up payment plans for personal income tax, corporation tax, and value added tax (VAT)

If you are struggling to pay your tax bills, you may be able to set up a payment plan with HM Revenue and Customs (HMRC). This is known as a Time to Pay arrangement.

Personal income tax

To set up a Time to Pay arrangement for personal income tax, you need to call HMRC on 0300 200 3835. You will need to provide HMRC with your National Insurance number and the amount of tax you owe. You will also need to explain why you are struggling to pay your tax bill.

HMRC will then consider your request and decide whether to grant you a Time to Pay arrangement. If they do, they will agree on a repayment schedule with you. You will need to make regular payments to HMRC until your tax bill is paid off.

Corporation tax

To set up a Time to Pay arrangement for corporation tax, you need to call HMRC on 0300 200 3821. You will need to provide HMRC with your company registration number and the amount of tax you owe. You will also need to explain why you are struggling to pay your tax bill.

HMRC will then consider your request and decide whether to grant you a Time to Pay arrangement. If they do, they will agree on a repayment schedule with you. You will need to make regular payments to HMRC until your tax bill is paid off.

Value added tax (VAT)

To set up a Time to Pay arrangement for VAT, you need to call HMRC on 0300 200 3835. You will need to provide HMRC with your VAT registration number and the amount of tax you owe. You will also need to explain why you are struggling to pay your tax bill.

HMRC will then consider your request and decide whether to grant you a Time to Pay arrangement. If they do, they will agree on a repayment schedule with you. You will need to make regular payments to HMRC until your tax bill is paid off.

Tips for setting up a Time to Pay arrangement

Here are some tips for setting up a Time to Pay arrangement with HMRC:

• Be honest and upfront with HMRC about your financial situation.

• Explain why you are struggling to pay your tax bill.

• Be prepared to provide HMRC with evidence of your financial situation.

• Be realistic about how much you can afford to repay each month.

• Stick to your repayment schedule.

If you are struggling to meet your repayments, you can contact HMRC to discuss your options. They may be able to reduce your repayments or extend your repayment schedule.

Getting help

If you are struggling to pay your tax bills, there are a number of organizations that can offer help and advice. These include:

• MoneyHelper

• National Debtline

• StepChange Debt Charity

• TaxAid

These organizations can provide you with free, confidential advice on how to manage your finances and deal with your debt.