⚠️ We are working hard to ensure this guidance is up to date. However, you should bear in mind that things may change as the government respond to the ongoing situation.

Coronavirus: Help with paying your tax

Updated on 14 January 2021

Due to the coronavirus (COVID-19) situation, people may be worried about affording tax payments that they owe. In response to this, HMRC are trying to offer additional support.

Illustration of people around a laptop and a tax document

What if I have a tax debt being collected through my PAYE code?

Both employees and pensioners have tax deducted from their wages or pension income through the Pay As You Earn system. If you owe tax from an earlier period, HMRC can adjust the PAYE code that is currently being used by your employer or pension provider to collect the additional tax.

In view of the current situation, if collection of such an old debt is causing you financial difficulty, you may be able to ask HMRC to spread it over a longer period. Our guidance for employees explains this further, but this could apply to pensioners or employees who are taxed under PAYE.

What if I pay tax through Self Assessment?

The government has announced various measures to help support people, for example giving them longer to pay their tax. The support offered through the tax system is outlined within our guidance for the self-employed.

Much of this support is the same for anyone who pays tax through Self Assessment. So if, for example, you rent out a property and pay tax on the rental income through Self Assessment, you will also be able to benefit from the support explained on our Self-employment page – for example, applying to spread your 31 January 2021 tax liability over a 12-month period.

If your income for 2020/21 has gone down compared to 2019/20, you might also be able to think about reducing your payments on account. Again, we explain more on our Self-employment page, though the same principles apply for other types of taxable income.

Coronavirus guidance: more information
Information for employers Taking money from your savings
What is the Job Retention Scheme? Taking money from your pension
Employees: illness or self-isolation Help with paying your tax
Employees: work changes Information if you are a student or are repaying your student loan
Employees: universal credit and pay Accessing money in childcare schemes
Redundancy explained High Income Child Benefit Charge: What to do if your income falls?
Support for limited company directors School closures: family members might be able to claim state pension ‘babysitting’ credits
Self-Employment Income Support Scheme Childcare support and benefits for children
SEISS parental extension Inheritance tax exemption
Self-employment and paying tax Support for Carers
Self employment: Illness or self-isolation Carer’s allowance: can you claim?
Self-employment: work changes Volunteering and job opportunities
Help for businesses in Northern Ireland, Scotland and Wales Scams: please be vigilant!
Test and Trace Support payment Dealing with HMRC during the coronavirus outbreak

Tax penalties: coronavirus ‘relaxations’

Coronavirus guidance home page

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