02
Jan
Jan
With the 31 January deadline approaching, thousands of taxpayers are using HMRC’s Time to Pay service to spread the cost of their self-assessment tax bill rather than facing immediate payment pressure.
HMRC has reported that thousands of people have set up payment plans to help spread the cost of their self-assessment tax bill. Taxpayers with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s ‘Time to Pay’ service. Almost 18,000 self-assessment payment plans were set up between 06 April 2025 and 30 November 2025. The deadline to file and pay any tax owed for the 2024-25 tax year is 31 January 2026.
If you owe tax to HMRC, you may be able to set up an online ‘Time to Pay’ payment plan depending on the type of tax debt and your circumstances. For self-assessment, you can create a payment plan online if you’ve filed your latest tax return, owe £30,000 or less, are within 60 days of the deadline and have no other debts or payment plans with HMRC.
A Time to Pay arrangement cannot be set up until a self-assessment return has been filed. If the tax owed is more than £30,000, or a longer repayment period is needed, people can still apply but will need to contact HMRC directly. HMRC will typically ask for details about your income, expenses, other tax liabilities, and any savings or assets, which they may expect you to use toward your debt.
HMRC will usually only offer taxpayers the option of extra time to pay if they think they genuinely cannot pay in full now but will be able to pay in the future. If HMRC do not think that more time will help, then they can require immediate payment of a tax bill and start enforcement action if payment is not forthcoming.
Source:HM Revenue & Customs | 01-01-2026
02
Jan
Jan
Employees with company cars may be paying unnecessary tax on private fuel, when reimbursing the cost of private fuel in full can often remove the car fuel benefit charge altogether.
Where an employee is provided with a company car and fuel for private use, the default position is that the employee must pay the car fuel benefit charge. The amount of the charge is calculated based on the car’s CO2 emissions and applied to the car fuel benefit multiplier, which is currently £28,200 and is set to increase to £29,200 for the 2026–27 tax year.
Avoiding the car fuel benefit charge is possible if the employee reimburses their employer for all fuel used for private journeys, a process known as ‘making good’. Private fuel includes all fuel used for commuting to and from work. To do this, employees should keep a record of private mileage and repay their employer using the published advisory fuel rates. These rates are designed to reflect average fuel costs and are updated quarterly.
If properly documented, HMRC will accept that no car fuel benefit charge is due, meaning the employee avoids the income tax liability on the private fuel. In most cases, reimbursing the employer is far cheaper than paying the tax, especially for employees with relatively low private mileage.
The car fuel benefit charge will still apply if it cannot be demonstrated to HMRC that the employee has reimbursed the full cost of fuel used for private journeys, including commuting. To prevent this, employees must maintain a detailed log of private mileage and ensure they make good the cost of all fuel provided for private use.
Source:HM Revenue & Customs | 01-01-2026
02
Jan
Jan
Owning more than one home can create valuable Capital Gains Tax planning opportunities, but only if you understand how and when to nominate a property for Private Residence Relief.
Typically, you do not have to pay Capital Gains Tax (CGT) when you sell a property that has been your main family home. In contrast, properties that have only been used as investments and never as a primary residence do not qualify for this exemption. This tax relief is known as Private Residence Relief (PRR).
It is increasingly common for taxpayers to own more than one home, and there are a number of important considerations for homeowners. An individual, married couple, or civil partnership can only benefit from PRR on one property at a time. However, it is possible to choose which property benefits from the CGT exemption when it is sold by making an election.
To nominate a property as your main home, you must write to HM Revenue and Customs (HMRC), specifying the full address of the home you want to nominate. All owners of the property must sign the letter. If your combination of homes changes, you must make a new nomination within two years of the change. You must also have lived in the house as your main or only residence at some point in the past.
Special rules apply for overseas properties and for non-UK residents. Since 6 April 2015, an overseas property can only be nominated if you lived in it for at least 90 days in the tax year. It is important to carefully consider the timing and frequency of making or changing an election to ensure maximum relief.
Even if you own more than one home, certain periods always qualify for relief. You are entitled to PRR for the last nine months before you sell your property, even if you were not living there at the time. Other qualifying periods may include the first two years of ownership if the property was being built or renovated, or if you could not sell your previous home, provided you lived in it as your only or main residence within two years of acquiring it.
Source:HM Revenue & Customs | 01-01-2026