If you cannot pay your tax bill then you can set up a\u00a0tax payment plan with HMRC if you owe Self Assessment tax. If your bill is less than \u00a330,000 you may be able to pay in monthly instalments. If you pay a tax bill late you must pay interest on the amount you owe until it\u2019s paid off but you can avoid penalties by arranging a payment plan with HMRC before the tax is due \u2013 or by 2 March for Self Assessment. For any other bills or problems paying, you must contact HMRC to discuss your options. How you contact HMRC depends on what you need to pay. Payment plans or payments in full must be in place by midnight on 1\u200c\u200c April to avoid a late payment penalty. To add to the urgency, HMRC has announced that Self Assessment customers will not be charged the initial 5% late payment penalty if they pay their tax or make a Time to Pay arrangement by 1\u200c\u200c April. The payment deadline for Self Assessment is 31 January and interest will be charged from 1 February on any amounts outstanding. The deadline has not changed, but this year, because of the impact of COVID 19, HMRC is giving taxpayers more time to pay or set up a payment plan. If you\u2019re self-employed You can set up a tax payment plan online to spread the cost of your latest Self Assessment bill if: \tyou owe \u00a330,000 or less \tyou do not have any other payment plans or debts with HMRC \tyour tax returns are up to date \tit\u2019s less than 60 days after the payment deadline Nominated partners in business partnerships can negotiate a Time to Pay Arrangement with HMRC on behalf of the partnership or individual partners. Call the Self Assessment helpline if you\u2019re not eligible for a tax payment plan or cannot use the online service. Self Assessment Payment Helpline Telephone: 0300 200 3822 Monday to Friday, 8am to 6pm (closed on bank holidays)\u00a0 If you cannot pay other taxes You might be able to set up a Time to Pay Arrangement with HMRC if you\u2019re unable to pay any other taxes in full. This lets you spread the cost of your tax bill by paying what you owe in instalments. How you do this depends on whether you\u2019ve received a payment demand. \tIf you\u2019ve received a payment demand, like a tax bill or a letter threatening you with legal action, call the HMRC office that sent you the letter. \tIf you\u2019ve not received a bill or letter, call the Payment Support Service (PSS). Payment Support Service Telephone: 0300 200 3835 Monday to Friday, 8am to 6pm (closed on bank holidays) If you cannot pay because of coronavirus You may be able to pay your Self Assessment tax in monthly instalments. This includes any delayed (deferred) \u2018payments on account\u2019 that were due in July 2020, if you did not pay them at the time. Contact the HMRC coronavirus helpline if you cannot pay any other tax bills because of coronavirus. Telephone: 0800 024 1222 Monday to Friday: 8am to 4pm Closed on weekends and bank holidays. Online payment plans Almost 25,000 Self-Assessment customers have set up an online tax payment plan to manage their tax liabilities in up to 12 monthly instalments, totaling \u00a369.1 million, HMRC revealed recently. In October,\u00a0HMRC\u00a0increased the threshold for self-serve Time to Pay arrangements from \u00a310,000 to \u00a330,000 for Self-Assessment taxpayers. Once they have completed their 2019-20 tax return and know how much tax they owe, taxpayers can use the self-serve facility to set up monthly direct debits and spread the cost of their tax bill. Taxpayers can\u00a0apply for the payment plan via GOV.UK. However, they must meet the following requirements: \tthey need to have no outstanding tax returns \tand other tax debts \tor other HMRC payment plans set up \tthe debt needs to be between \u00a332 and \u00a330,000 \tthe payment plan needs to be set up no later than 60 days after the due date of a debt So, there are plenty of options for setting up a tax payment plan; just makes sure that you contact HMRC as soon as possible. And we suggest you try as soon as the lines open as they get very busy during the day.