Paying HMRC
Time to Pay: how to spread an HMRC tax bill and avoid penalties
If you cannot pay in full, a Time to Pay arrangement spreads the bill and, set up in time, prevents the late-payment penalties.
What it is
A Time to Pay arrangement is an agreement with HMRC to pay your tax in instalments, usually monthly. It applies to Self Assessment, VAT, PAYE and Corporation Tax.
Setting one up
- Self Assessment debts under a threshold can often be set up online without speaking to anyone, if the return is filed and you are within 60 days of the payment deadline.
- Larger or older debts require a call to HMRC's Payment Support Service.
The penalty benefit
If you agree a Time to Pay arrangement before the 30-day late-payment point and keep to it, HMRC will not charge the late-payment penalties. Interest still accrues until the balance is cleared.
Last reviewed September 2026. General information, not tax advice - check your penalty notice and GOV.UK for your exact figures.
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