Can't pay your tax bill? How a Self Assessment payment plan works

Checked against GOV.UK on 23 October 2026. General information for sole traders in England, Wales and Northern Ireland, not tax advice. Scottish Income Tax rates are different.

What it is

A payment plan (often called Time to Pay) lets you pay an overdue tax bill in monthly instalments by Direct Debit. HMRC expects the plan to be affordable for you.

Setting it up online

GOV.UK says you can usually set up a Self Assessment payment plan online if:

• you've filed your latest tax return;
• you owe £30,000 or less;
• it's within 60 days of the payment deadline;
• you don't have any other payment plans or debts with HMRC;
• you plan to pay within 12 months.

If you owe more or need longer, you can still contact HMRC.

What you need

• Your UTR: see finding your UTR.
• Bank details you can set up a Direct Debit from.
• An idea of your income and spending.

Interest still runs

Interest is charged on the unpaid tax until it's paid. See late payment penalties and interest.

Example

Lee owes £3,600 on 31 January 2027. He files, pays £600 straight away, then sets up a plan online for the remaining £3,000 over 12 months, about £250 a month plus interest.

Plan ahead next year

Use the January tax bill calculator to see January and July in advance, and see how to pay. Money owed to you is often why the tax money isn't there, so see how to chase an unpaid invoice.

This guide is part of our Self Assessment guides for the self-employed.