Time to Pay Arrangements with HMRC: What They Are and How to Apply
Chrissy Leach • 26 January 2026
If you’re struggling to pay your tax bill, HMRC’s Time to Pay arrangement could give you the breathing space you need - here’s how it works and how to apply.
What is a Time to Pay Arrangement?
A Time to Pay arrangement is a payment plan agreed with HMRC that allows you to spread the cost of your tax bill over a longer period if you can't afford to make the payment on time.
Rather than facing penalties or enforcement action, you can work with HMRC to pay your tax in manageable monthly instalments.
Who Can Apply?
You can request a Time to Pay arrangement if you:
- Owe tax to HMRC and cannot pay it in full on time
- Are willing to pay what you owe in instalments
- Communicate proactively with HMRC before or shortly after the payment deadline
How to Apply for a Time to Pay Arrangement
1. Check if you’re eligible online
If your Self Assessment tax bill is under £30,000 and you:
- Have no other payment plans or debts with HMRC
- Are within 60 days of the payment deadline
- Have filed all returns up to date
You can usually set up a Time to Pay plan online through your HMRC account - no need to call.
2. Contact HMRC directly
For larger debts, or if you don’t meet the online criteria, you’ll need to call HMRC’s Payment Support Service. They’ll ask for details such as:
- The amount you owe
- Why you’re struggling to pay
- What payments you can afford each month
3. Agree a payment plan
If HMRC agrees, you’ll receive confirmation of your monthly payment amount and duration of the plan. Payments are typically made via Direct Debit.
What HMRC Will Consider
When reviewing your request, HMRC will look at:
- Your financial position and cashflow forecast
- Whether you’ve kept up with past tax obligations
- Your ability to make regular payments
They’ll want reassurance that the debt can be cleared within a reasonable timeframe.
What Happens If You Miss a Payment?
If you miss a payment or don’t keep up to date with new tax obligations, HMRC can cancel the arrangement and demand the full amount immediately.
It’s crucial to contact HMRC straight away if your circumstances change - they may be able to adjust your plan.
Benefits of a Time to Pay Arrangement
✅ Avoids penalties and enforcement action
✅ Protects your credit and reputation
✅ Helps manage cashflow during tough periods
✅ Keeps your business trading while catching up on tax
Need help simplifying your taxes?
At CJL Accountancy, we can help you understand your tax, make sure your Self Assessment is accurate and up to date, and advise on how best to approach HMRC if you’re struggling to pay.
📞 Get in touch today for friendly, professional support with your Self Assessment.
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