HMRC has taken a further step to help sole traders and small businesses in the midst of the COVID-19 pandemic by increasing the “Time to Pay” tax threshold to let people pay their tax more gradually.

The current tax threshold to be eligible for the Time to Pay scheme is £10,000, but that will be raised to £30,000 from October 1st to give those who owe larger amounts of tax the option of making incremental monthly payments as well. At the end of last month, Chancellor Rishi Sunak stated that the government would be doing more to help businesses cope with the pandemic, and this is the first major announcement aimed at doing so.

According to Accountancy Daily, the Treasury Financial Secretary Jesse Norman stated that the government was keen to give sole traders and other business owners more time to deal with tax bills, so that they could use this money to stay afloat and preserve jobs. Norman added that:

“Enhancing Time to Pay should ease the financial burdens and protect the livelihoods of these taxpayers, as they navigate the months ahead.”

After filing their 2019/20 self-assessment, those liable for tax will have the choice of applying for time to pay via the online system, rather than settling this bill by January 31st. Given how complex the tax options for businesses can seem, it is no surprise that many business owners hire an accountant to handle tax return services in South Yorkshire or whatever region they are in.