Let’s face it, paying your tax in lump sums twice a year is a killer for many taxpayers.

Unless you are a ruthless saver, stumping up hundreds or thousands of pounds to HMRC can make January and July rather bleak. There is now a better way to spread the pain. HMRC have recently launched the Budget Payment Plan which enables self assessment taxpayers to set up a direct debit that allows you to pay your tax liability on a weekly or monthly basis.

The plan is extremely flexible and allows you to:

• Decide how much you want to pay

• Choose the frequency of your payments (Weekly or Monthly)

• Change you regular payment amount

• Stop payments for up to 6 months

• Cancel your payments at any time

The Budget Payment Plan is only available to you if you are fully up to date with your tax payments. If you haven’t paid the full amount owing by the 31st January deadline, you will need to make an additional balancing payment or you will receive a rebate if you have overpaid during the year. The direct debit payments are easy to set up and manage through your HMRC Online services. Get in touch with us if you need help.