If you find it difficult to pay your tax bill due in January and July each year you can choose to make regular payments throughout the year instead.
You can set up a Budget Payment Plan with HMRC and you can decide how much to pay weekly or monthly towards your tax bill. This spreads the cost and, whilst you may not know what your tax bill is going to be, it will be reassuring to know at least some of the amount due is already paid.
If there is any amount outstanding when your January or July payment is due you will have to pay the balance.
You can choose to pause your regular payments for up to six months which you may want to do if you have some particular large other bills to pay or you think your tax bill is going to be lower than you were planning for.
This scheme can only be used when you tax account is paid up to date. So if you have fully paid your January instalment, now would be the time to set up a regular payment.
To set up your Budget Payment Plan login into your online Government Gateway account and choose the Budget Payment Plan option.
