If you cannot pay your Self Assessment tax bill, you should take action as soon as possible to reduce penalties and avoid enforcement action.
This guide explains:
- what to do if you cannot pay your Self Assessment tax bill
- how HMRC payment plans work
- what happens if you do nothing
Quick answer: cannot pay self assessment tax bill
If you cannot pay your Self Assessment tax bill:
- do not ignore the bill
- file your tax return on time
- check how much you owe
- set up a payment plan as soon as possible
Acting early gives you more options and helps reduce additional charges.
Why acting early matters
If you cannot pay your Self Assessment tax bill and delay action:
- interest will begin to build
- penalties may be added
- HMRC may take further action
HMRC is usually more flexible if you contact them before the situation escalates.
File your tax return even if you cannot pay
If you cannot pay your Self Assessment tax bill, you should still file your return.
Submitting your return:
- avoids late filing penalties
- confirms how much you owe
Filing does not pay your bill, but it is required before setting up a payment plan.
Check how much you owe
Before taking the next step, confirm:
- your total Self Assessment tax bill
- your payment deadline
- whether payments on account apply
Why your self assessment tax bill might be higher than expected
If you cannot pay your Self Assessment tax bill, it may be because the amount is higher than expected.
This often happens when:
- your income increased
- tax was not fully collected during the year
- payments on account apply
Payments on account mean you may be paying:
- tax for the previous year
- plus an advance payment for the current year
Learn more:
Payments on account explained – GOVexplained
Set up a payment plan (Time to Pay)
If you cannot pay your Self Assessment tax bill, HMRC may allow you to pay in instalments.
This is called a Time to Pay arrangement.
A payment plan can:
- spread the cost over time
- reduce the risk of enforcement action
- help you manage your payments
When you can set up a payment plan online
You can usually set up a plan if:
- you owe £30,000 or less
- the debt is from Self Assessment
- you apply within 60 days of the deadline
- you do not already have another plan
Important: you must file first
You normally need to submit your Self Assessment tax return before setting up a payment plan.
After filing, it can take 48 to 72 hours for HMRC’s system to update your balance.
During this time, you may not be able to set up a plan.
If you cannot use the online service
If you cannot set up a payment plan online, you may need to contact HMRC directly.
Self Assessment Payment Helpline: 0300 200 3822
Interest and penalties if you cannot pay your self assessment tax bill
If you cannot pay your Self Assessment tax bill by the deadline:
- HMRC will charge interest at the rate in force at the time
- late payment penalties may apply
Interest starts from the day after the deadline and continues until the balance is paid.
How penalties can increase
| Timing | What happens |
|---|---|
| After deadline | Interest starts |
| Around 30 days | Initial penalty may apply |
| Around 6 months | Additional penalties |
| Around 12 months | Further penalties |
Payment plans do not stop interest
If you cannot pay your Self Assessment tax bill and set up a payment plan:
- it may stop further penalties if agreed
- interest will usually continue on the remaining balance
If you can pay part of your tax bill
If you cannot pay your Self Assessment tax bill in full:
- paying part of the bill is better than paying nothing
- interest only applies to the unpaid balance
You should still arrange a plan for the remaining amount.
What happens if you do nothing
If you cannot pay your Self Assessment tax bill and take no action:
- penalties and interest will increase
- HMRC may pass the debt to a collection agency
- enforcement action may be taken
Taking action early can help you avoid these outcomes.
If you are struggling financially
If you cannot pay your Self Assessment tax bill due to wider financial problems:
- you may benefit from independent debt advice
- HMRC can direct you to free support
More information:
Get help with tax debt – GOV.UK
What to do next
- If you cannot pay → set up a payment plan
- If your bill seems incorrect → check your calculation
- If you are unsure → review your account
For a full overview:
Self Assessment explained – GOVexplained
Next steps
- Payments on account explained – GOVexplained
- Find your UTR number – GOVexplained
- Do I need to do Self Assessment – GOVexplained
Common questions about cannot pay self assessment tax bill
What happens if I cannot pay my Self Assessment tax bill?
Interest and penalties may apply, and HMRC may take further action if you do nothing.
Can I set up a payment plan with HMRC?
Yes, you may be able to use a Time to Pay arrangement to pay in instalments.
Will HMRC charge interest if I pay late?
Yes, HMRC charges interest at the rate in force at the time.
Should I file my return if I cannot pay?
Yes. Filing on time helps avoid additional penalties.