Can't pay your tax bill? Plan a payment arrangement
If you can't pay a tax bill in full, HMRC may let you pay it monthly. See what each payment would be, the interest, and whether you can set it up online.
Your answer
Enter how much you owe to see the monthly payment.
About this calculator
For a Self Assessment, VAT or employers' PAYE bill you can't pay in full. It works out the monthly payment and interest on a payment plan (HMRC calls it Time to Pay), whether HMRC's online service will take it, and the late payment penalties a plan can stop.
It doesn't cover Corporation Tax or other taxes, the Budget Payment Plan for a bill that isn't due yet, or plans HMRC sets after looking at your income and spending.
What happens to your answers
We don’t keep them. Your answers go to our server to do the sums and aren’t stored or logged. If you copy a link to your answers, they’re in the link itself, so only share it with people you trust.
How it’s worked out
Online, you can set up a plan yourself if you owe up to £30,000 of Self Assessment (within 60 days of the due date, for up to 24 months), or up to £100,000 of VAT or PAYE that's overdue (for up to 12 months). You also need your returns filed and no other HMRC debts or plans. Otherwise you call HMRC, who can agree a longer plan.
Interest is HMRC's late payment rate (the Bank of England's rate plus 4%) on what's left. HMRC charges it daily; we work it out each month, like a loan: the balance × the yearly rate ÷ 12, then your payment comes off. The payment is the same each month, with a smaller last one. Interest from the due date to today is added first.
Penalties: a plan agreed in time stops the late payment penalties that would come after you ask, as long as you keep to it. For VAT, asking within 15 days stops them all; by day 30 stops all but the first 3%; later stops the daily penalty from the day you ask. For Self Assessment, a plan stops the 5% penalties not yet charged.
Worked example
Paying £10,000 over 12 months is about £868.73 a month, with £424.74 of interest.
Self Assessment tax bill (not a payment on account) · due now · plan over 12 months · interest at 7.75% throughout · we assume your tax returns are up to date, you have no other HMRC debts or payment plans · penalties already due are not in the plan
| Self Assessment you owe | £10,000.00 |
|---|---|
| What goes into the plan | £10,000.00 |
| Interest each month: 7.75% a year ÷ 12 = 0.6458% of what's left (HMRC charges daily; monthly is close) | 0.6458% |
| Monthly payment: £10,000.00 × 0.6458% ÷ (1 − (1 + 0.6458%) to the power −12), rounded up | £868.73 |
| Month 1: £10,000.00 × 0.6458% = £64.58 interest, so £804.15 of the payment goes off the debt | £64.58 |
| Interest over the plan: 12 months, each on the balance then left | + £424.74 |
| Total you pay: 11 × £868.73 + a last payment of £868.71 | £10,424.74 |
| Penalty a plan agreed now stops: 5% of the tax at 30 days | £500.00 |
| Penalty a plan agreed now stops: 5% of the tax at 6 months | £500.00 |
Worked out using HMRC's published rates for the 2026/27 tax year (6 April 2026 to 5 April 2027), on a yearly basis.
Questions people ask
What happens if I miss a payment?
HMRC will get in touch and may rearrange the plan. If it's cancelled, they can charge the penalties the plan stopped, as if it never existed. Our late tax calculator shows what those would be.
What if I don't set up a plan at all?
Interest keeps running and the late payment penalties are added. In time HMRC can use debt collectors, take money from your wages or bank account, or take you to court.
Can a plan be longer than the online limit?
Yes. There's no time limit on a plan agreed by phone. HMRC looks at what you earn and spend, and expects you to use savings first.
More free calculators
Talk to us about your tax.
A free call with the team. We’ll contact you within 24 hours.