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    Cannot afford my January tax bill: what to do now

    Factual guidanceFresh — reviewed 19 April 2026Sources: 6Next review: 18 July 2026

    Take this with you

    Dated, pre-fillable checklist + your details — ready to show a rep or solicitor.

    In the next hour

    • Do not ignore this. HMRC charges daily interest (around 7.75% per year from 9 January 2026) and adds 5% late-payment penalties at 30 days, 6 months and 12 months.
    • File your 2024-25 return online today if you have not. You cannot get Time to Pay until the return is in.
    • Log into your HMRC online account and check your total Self Assessment liability (tax plus Class 4 NI plus any payments on account).
    • Write down your real monthly take-home and your rent, energy, council tax, childcare, food and debt repayments. You will need this for the Time to Pay conversation.

    In the next week

    • If you owe less than 30000 pounds, it is less than 60 days since 31 January 2026, you have no other HMRC debts, and all returns are filed, use the online Set up a payment plan tool. Typical plans run up to 12 months.
    • Choose a monthly payment you can actually afford after rent and food. Do not pick the shortest plan just to get it over with.
    • Set up the direct debit and put every payment date in your diary. Missing a payment can cancel the plan and reopen penalties.
    • If you owe more than 30000 pounds, are more than 60 days late, or already have tax arrears, ring the Self Assessment Payment Support line. Be ready for income and expenditure questions.

    In the next hour

    • Do not ignore this. HMRC charges daily interest (around 7.75% per year from 9 January 2026) and adds 5% late-payment penalties at 30 days, 6 months and 12 months.
    • File your 2024-25 return online today if you have not. You cannot get Time to Pay until the return is in.
    • Log into your HMRC online account and check your total Self Assessment liability (tax plus Class 4 NI plus any payments on account).
    • Write down your real monthly take-home and your rent, energy, council tax, childcare, food and debt repayments. You will need this for the Time to Pay conversation.

    In the next week

    • If you owe less than £30,000, it is less than 60 days since 31 January 2026, you have no other HMRC debts, and all returns are filed, use the online "Set up a payment plan" tool. Typical plans run up to 12 months.
    • Choose a monthly payment you can actually afford after rent and food. Do not pick the shortest plan just to get it over with.
    • Set up the direct debit and put every payment date in your diary. Missing a payment can cancel the plan and reopen penalties.
    • If you owe more than £30,000, are more than 60 days late, or already have tax arrears, ring the Self Assessment Payment Support line. Be ready for income and expenditure questions.

    Tools, guides and templates to use

    When to escalate

    HMRC Self Assessment Payment Support: 0300 200 3822. TaxAid (free, for low income) at taxaid.org.uk, 0345 120 3779. StepChange at stepchange.org, 0800 138 1111. National Debtline at nationaldebtline.org, 0808 808 4000. Do not use payday lenders to pay HMRC.

    Last reviewed

    19 April 2026

    Primary sources used:

    • Research/Gap/G1.6-hmrc-time-to-pay.md
    • Research/S2-tax/2.1-self-assessment-for-gig-workers.md

    Before you leave

    Sources

    • HMRC Time to Pay arrangement rules (GOV.UK)
    • HMRC late-payment interest rate (7.75% from 9 January 2026)
    • HMRC Self Assessment Payment Support 0300 200 3822
    • TaxAid 0345 120 3779
    • StepChange 0800 138 1111
    • National Debtline 0808 808 4000
    Fresh — reviewed 19 April 2026