Spreading your January self-assessment payment

Anna Stubbs • January 18, 2024

With a combination of low growth and high inflation, the 2022/23 tax year has been a tough time, financially speaking, for many of us.


So it’s no surprise that many owners, directors and self-employed individuals are concerned about having enough funds to pay their self-assessment income tax bill.


The good news is that HM Revenue & Customs (HMRC) does have a facility for spreading out your income tax payments. HMRC’s ‘time-to-pay’ arrangement allows you to pay your tax bill in pre-agreed installments, with a small amount of interest added on for the use of this service.



Where the amount due doesn’t exceed £30,000, you can apply online; otherwise you will need to contact them to discuss what arrangements can be put in place.

How does the time-to-pay scheme work?

The time-to-pay scheme relates to HMRC’s online payment plan service, allowing you to come to an agreement about deferring your tax bill and spreading the costs over several months.

For your 2022/23 tax return, you can spread the balance of your 2022/23 liability as well as the first payment on account towards the 2023/24 tax bill.

Some other considerations of the facility include:

  • Interest will be charged from 1 Feb 2024, at base rate plus 2.5% p.a.
  • You need to choose how much to pay initially and how much you will then pay monthly.
  • If a payment is missed, the whole amount can be demanded by HMRC.
  • If an arrangement is set up, this avoids any enforcement action to collect your due taxes, ie. calling in debt collectors etc.


How to check if you’re eligible for online payments

So, how do you know if you’re eligible to set up a time-to-pay agreement with HMRC? There are five criteria that must be met for HMRC to consider an online payment arrangement.


The five criteria are:

  1. The amount due must be between £32 and £30,000.
  2. There must be NO outstanding tax returns to submit
  3. There must be NO other tax debts
  4. There must be NO other active HMRC payment plans
  5. The length of the payment plan must not exceed 12 months


The deadline to set up online payments is within 60 days of the due date – in this case, 1 April 2024 for the last tax year and the first payment on account for the current tax year.


If you don’t qualify based on the five rules mentioned above, you can still apply for normal (not online) time-to-pay arrangements. It’s worth noting that time-to-pay arrangements don’t show up in credit searches – but if you default and it ends up with an Individual Voluntary Agreement (IVA) or County Court Judgement (CCJ) being made, that will obviously show up.


Talk to us about agreeing a time-to-pay arrangement


If you’re concerned about not being able to pay your January self-assessment income tax bill, please do come and talk to us. We’ll review your financial situation, your liquid funds and will work out how much you can realistically afford to pay.


Get in touch to talk about an online payment plan.

By Anna Stubbs January 8, 2026
"Gone are the days when flexible work was a perk. Whether it’s hybrid roles, remote options, or custom hours, flexibility has become a baseline expectation." - Recruitment Trends for SMEs by Onside. The pandemic may have introduced us to the idea of working from home, but the ability to flex where we work from is now a core expectation for many employees.
By Anna Stubbs January 8, 2026
“Q: Do customers still want good, old-fashioned customer service?” Customer service has changed. We now have multiple options for automating our customer interactions or offering self-service options to our customer base. Customers can talk directly to AI agents or sort out a query with an automated chatbot. It’s fast, efficient and (from your viewpoint as an employer) highly cost-effective. But is automated customer service always the best option? In an environment where your customers are surrounded by digital interactions, wouldn’t it be nice to offer a more human and personalised level of customer service? And does that mean hiring more staff? “A: There’s still great value in personalised customer service.” Fundamentally, customers are still seeking out the human element of customer service, amongst the sea of digital and online noise that we’re now surrounded by daily. There are three core reasons why customers crave this more personal touch: Trust and empathy : When dealing with complex or emotionally charged issues (like financial errors or faulty products), customers want to talk to a human agent who can demonstrate empathy and take ownership of the problem. Chatbots may be efficient, but they don’t deliver when it comes to customer empathy. Context and recognition : Old-fashioned service means being recognised and having your history remembered. Customers expect the business to know their needs, history and preferences without forcing them to repeat this information. A human agent with access to a CRM system can deliver this recognition in a personalised and tailored way. A need for exceptional service : A recent Australian survey found that 88% of consumers expressed satisfaction with customer service interactions that were managed mostly or fully by human agents. When customers have a good experience with a human agent, this increases their brand advocacy and can also generate positive word-of-mouth referrals (one of the best ways to attract new customers). The impact of human-led customer service can be immense. AI agents and software automation can boost your overall efficiency for many simple tasks and customer interactions. But having the human touch drives customer loyalty, retention and your competitive advantage. Hiring more customer service staff (and investing in their training) could be a way to find your own competitive advantage as a business.
By Anna Stubbs January 8, 2026
Is your cashflow position keeping you awake at night? Don’t worry, we have five simple tips to improve your cashflow management and achieve a positive cash position.