HMRC’s Time to Pay system, and a recycling boost for online marketplaces
Today we guide you through how to spread the cost of your tax bill using HMRC’s Time to Pay system, plus the government support online marketplaces with the cost of recycling.
Spread the cost of your Self Assessment tax bill with HMRC’s Time to Pay
With the holidays and end of the year fast approaching, it’s a good time to plan your finances for the new year. For those who file Self Assessment tax returns, the prospect of having to make a heavy tax payment at the end of January 2025 may be causing you concern.
Did you know that HM Revenue & Customs (HMRC) provides an option to spread the cost of your tax bill with their Time to Pay system?
What is Time to Pay?
Time to Pay is an HMRC service that allows taxpayers to spread the cost of their Self Assessment bill over regular monthly payments. It’s designed for those who can’t pay their bill in full by the deadline. By using Time to Pay, you can avoid further late payment penalties, provided you stick to the agreed payment plan.
Key points to know:
- Eligibility: If your tax bill is less than £30,000, then a payment plan can be set up online without needing to contact HMRC. If you owe more than £30,000, you’ll need to contact HMRC to discuss your options.
- Deadline: The tax return and payment deadline for the 2023 to 2024 tax year is 31 January 2025. To use Time to Pay, you must first file your tax return before you can set up a Time to Pay arrangement.
- Payment Terms: You can spread payments over a maximum of 12 months, making budgeting more manageable. However, you must ensure you budget for the monthly payments, as missed payments will result in interest and penalties.
HMRC reports that over 15,000 taxpayers have already set up Time to Pay plans for the 2023 to 2024 tax year.
Planning ahead and understanding your options can make tax return filing less stressful. If you’re worried about how you will pay your tax bill, Time to Pay may be a practical option for you to consider.
If you would like any help agreeing payment arrangements with HMRC or with filing your Self Assessment, please get in touch and we will be happy to help you!
Online marketplaces and vape producers to help fund recycling costs
The UK Government has announced new measures to ensure online marketplaces and vape producers contribute fairly to the costs of recycling electrical waste. Circular Economy Minister Mary Creagh revealed the plans last week, marking a significant step towards creating a circular economy and supporting UK retailers.
Levelling the playing field
Currently, UK-based retailers bear most of the financial burden for recycling electrical items such as toasters, hair curlers, and vapes. This has placed them at a disadvantage compared to online marketplaces that often avoid such costs. The new rules will require online retailers to pay their share, providing a fairer system for all businesses.
Minister Creagh stated: “Electrical equipment like vapes are being sold in the UK by producers who are failing to pay their fair share when recycling and reusing of dealing with old or broken items. Today we’re ending this: creating a level playing field for all producers of electronics, to ensure fairness and fund the cost of the treatment of waste electricals.”
Tackling waste and boosting recycling
Each year, the UK discards around 100,000 tonnes of household electrical items, with many valuable materials such as copper and gold lost in landfills. Improper disposal also poses health and safety risks to the waste industry. The government’s initiative aims to reduce waste and recover these valuable resources.
Research from Material Focus estimates that 100,000 tonnes of smaller household electrical items, such as kettles and lamps, are incorrectly thrown away every year.
Alex Baldock, CEO of Currys said: “We welcome the Government’s new measures to help level the playing field for responsibility for waste, making online marketplaces do their part. Low value, low quality, and unsustainable tech is piling up in landfills, and it’s good to see Government doing something to tackle that.”
Changes to regulations
Under the new plans:
- Online Marketplaces: Platforms will need to register with the Environment Agency and report data on UK sales of their overseas sellers. This data will determine their financial contributions to recycling costs.
- Vape Producers: A new category will be created for vapes, ensuring producers pay for recycling these items.
Circular Economy Taskforce
The government has also established a Circular Economy Taskforce to develop a comprehensive Circular Economy Strategy for England. This is set to be published next year. The strategy will outline sector-specific measures to promote sustainability and reduce waste.
This initiative complements other efforts, such as the upcoming deposit return scheme for drinks containers and extended producer responsibility for packaging. Together, these reforms aim to reduce waste, stimulate recycling infrastructure, and create thousands of green jobs.
A call to action
These new measures mark a further step in tackling the throwaway culture and transitioning towards a sustainable economy. These changes aim to protect the environment, support UK businesses, and recover resources that would otherwise go to waste.
See: https://www.gov.uk/government/news/online-giants-to-pay-their-fair-share-for-electrical-waste