Can I arrange a payment plan with HMRC, and what information will they need?

Start by confirming the tax due, the payment deadline and any returns still outstanding. Have your tax reference, bank details and a clear picture of income, spending, savings and other debts ready. For a company, prepare a cash forecast showing how the proposed instalments and new tax bills will be funded. HMRC may ask about assets or other ways of reducing the debt before agreeing terms. Some arrangements can be set up online, subject to the current eligibility rules; others require a conversation with HMRC. Contact them as early as possible rather than waiting for recovery action. A payment plan should reflect what you can sustain, not an optimistic best month.

A Time to Pay arrangement spreads an existing liability; it does not normally remove late payment interest or give you permission to ignore future bills. Allow for ongoing VAT, payroll taxes and other commitments alongside the instalments. If circumstances change and you cannot meet an agreed payment, contact HMRC promptly rather than silently missing it. Paying towards a future Self Assessment bill through a Budget Payment Plan is a different arrangement from dealing with overdue tax. CASS can help check the debt, prepare the figures and assess a realistic proposal. HMRC decides whether to agree it, so keep a record of the terms and monitor the cash forecast afterwards.