How do I set up a payment plan with HMRC?
Answered 17 March 2026
Based on the available sources, I can provide a practical overview of how to set up a payment plan (known as a "Time to Pay" (TTP) arrangement) with HMRC. However, please note that the retrieved sources are primarily internal HMRC guidance and tribunal decisions rather than step-by-step public-facing guidance. Here is what the sources tell us:
HMRC Guidance / Practice
What is a Time to Pay (TTP) arrangement?
A Time to Pay arrangement is the formal name for a payment plan with HMRC. It allows taxpayers who cannot pay their tax in full by the due date to pay in instalments over an agreed period.
How to set one up
There are two main routes:
1. Online (Self-Serve) Customers can set up certain payment plans online via HMRC's Online Services (GOV.UK). To do this, you must be registered for the relevant online service (e.g. Self Assessment, PAYE for employers, Corporation Tax, Construction Industry Scheme, or Machine Games Duty). Online options include:
- A Single Payment Plan or Budget Payment Plan for Self Assessment liabilities
- A 12-month Time to Pay arrangement for tax credits customers to repay overpaid tax credits
If you cannot pay your Self Assessment bill in full, HMRC has directed taxpayers to go to GOV.UK and search "difficulties paying HMRC" to access the self-serve payment plan option.
2. Contacting HMRC's Debt Management Department Where a taxpayer cannot pay in full and wishes to request extra time, this is handled by HMRC's Debt Management and Banking (DMB) team. Tribunal cases confirm that taxpayers have been advised to contact HMRC's Debt Management department directly to agree a TTP arrangement.
Key points to be aware of
- Interest will still be charged even if a payment plan is in place.
- A TTP arrangement can protect against late payment penalties, provided the arrangement is complied with.
- Normally, only one TTP arrangement is permitted in any 12-month period, and a condition of any TTP is that future payments must be made in full and on time.
- If a TTP arrangement fails (e.g. payments are missed), HMRC may cancel it and resume debt recovery action.
⚠️ Note: The sources available do not include the full public-facing GOV.UK guidance page on setting up a payment plan. For the most up-to-date step-by-step instructions, you should visit GOV.UK and search "difficulties paying HMRC" or "Time to Pay arrangement", or call HMRC's Payment Support Service directly.
Citation sources
ity warning letter to PLL because it had failed to pay all the PAYE and NICs due. The letter explained that if PLL did not pay the full amount of PAYE and NICs due by 13 November 2022, it would be issued with a NOR and required to pay security for PAYE and NICs. Based on the information held at that time, HMRC stated in this letter that a security deposit of £87,871.23 would be required if it issued a NOR to PLL. 44. On 15 November 2022, HMRC contacted Mr Benson who confirmed that he had receive
yment details, submitting your return and paying anything you owe. You can ask questions throughout using the on-screen text box. Register here These short videos, available on HMRC’s YouTube channel, are part of a series to help you with your tax return: • Class 2 National Insurance contributions and your Self Assessment tax return • Viewing your Self Assessment tax return calculation • How do I pay my Self Assessment tax bill? If you can’t pay in full These are difficult times and we know that m
There are six different types of payment scheme Budget Payment Plans (BPP) Single Payment Plans (SPP) Time to Pay (TTP) Advance Payment Statutory Instalment Arrangement Scottish Sharefishermen For more information about Budget Payment Plans, Single Payment Plans and how to use the National Direct Debit System (NDDS) see the National Direct Debit User Guide (NDDUG). Where a taxpayer is unable to make payment in full by the due date and is asking for extra time to make payment, this is known as a
Customers can access NDDS via their Online Services on the HMRC website. Customers must be registered for one or more of the following online services before they can set up a direct debit online: Self Assessment PAYE for employers Corporation Tax Construction Industry Scheme Machine Games Duty Customers can use NDDS to set up a single payment for: Self Assessment PAYE - including Class 1 National Insurance contributions Class 1A National Insurance contributions self-employed Class 2 National In
he liability or to make suitable arrangements with HMRC. 29. I have not been provided with any evidence that Mr Wragg sought alternative funding to enable him to pay the tax. I cannot therefore find a reasonable excuse on that basis. 30. On the question of making arrangements with HMRC, Mr Wragg relies on having made a number of calls to notify HMRC of his lack of funds. I do not consider that simple notification is sufficient grounds for a reasonable excuse. Mr Wragg (or Azets) do not appear to
lanced that against its commitment to its staff; as Miss Owens put it in her note to HMRC, “we made the decision to meet the wage commitments of 100+ employees, at that time over the VAT”. It is clear from the telephone transcripts discussed below and Miss Owens’ note to HMRC that VAT was not the only tax Mareel was managing. 41. On 6 August 2021 (the day before the return and payment for 06/21 were due) Miss Owens had a conversation with HMRC asking to delay the VAT payment (which Mareel could