Glossary · UK

What is Time to Pay?

An HMRC arrangement letting you clear a tax debt in monthly instalments instead of one lump sum.

Full Definition

Time to Pay (TTP) is HMRC's instalment arrangement for taxpayers who cannot pay a tax bill in full by the due date. For Self Assessment, individuals owing £30,000 or less can usually set up a plan online without speaking to HMRC, provided their returns are up to date and they apply within 60 days of the payment deadline; larger debts or other taxes generally require a phone call. Instalments are typically spread over up to 12 months (sometimes longer), and HMRC charges late-payment interest on the outstanding balance — the rate is set at base rate plus 4%. Setting up a plan before the deadline, and keeping to it, avoids late-payment penalties, but missing instalments can cause HMRC to cancel the arrangement and demand the full balance.