Payments, Repayments and Debt – Introduction of Managed Payment PlansThursday, February 4th, 2010
Following consultation during 2008, HMRC announced at the time of the 2009 Budget that one of the proposed approaches to minimising potential debt problems for taxpayers, known as “Managed Payment Plans”, could not be introduced before April 2010 due to the need to make system enhancements.
HMRC has now confirmed that the scheme will be in place for that date. Managed Payment Plans will not apply to PAYE tax due from employers, but to self-assessed income tax and, in some situations, to corporation tax.
The arrangements will give taxpayers the facility to make regular monthly payments based on their liability and the payments will straddlethe due dates, with the payments in advance of the due date balanced by those made in arrears. Interest and surcharges will be suspended in such an arrangement.
Initially, HMRC will accept payment by Direct Debit only but may offer a choice of electronic payment methods in the future.
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