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HMRC Time to Pay Calculator

Enter your tax bill, income, essential costs and savings. See the monthly payment HMRC is likely to accept, how long the plan takes and the interest you'll pay along the way.

In short: What is a Time to Pay arrangement?

A payment plan with HMRC that lets you pay an overdue tax bill in monthly instalments. HMRC checks the plan is affordable; if you can't agree one, it will ask you to pay in full.

Last reviewed against 2 official sources.

Try an example:

What you owe

Your monthly budget

HMRC looks at what is left after essentials

Left over each month: £700 · HMRC usually asks for about half: £350

Savings

HMRC expects you to use savings to reduce the debt first

Time to clear

20 months

£350 a month after £1,500 from savings

Paid from savings
£1,500
Estimated interest
£446.56
Total paid
£8,446.56

Interest at HMRC's late payment rate of 7.75% (from 9 January 2026), estimated as simple interest.

There's no fixed time limit on a plan, but HMRC must agree it's affordable. Paying more each month cuts the interest.

Your HMRC balance month by month

£50 more a month finishes 2 months sooner and saves about £57 interest.

What if you paid a bit more?

18 months instead of 20.

Total cost of the arrangement

Interest adds £447 to a £8,000 debt.

The link holds your numbers in the address. Nothing is sent to us.

How HMRC decides what you can pay

  1. Take your monthly income and subtract essential outgoings, housing, food, utilities and fixed bills.
  2. HMRC usually asks for about half of what's left.
  3. Savings and assets above what you need are used to cut the debt first.
  4. Interest keeps running on the balance until it's paid.

Worked example

You owe £8,000. You take home £2,600 and essentials cost £1,900, leaving £700. HMRC is likely to ask for about £350 a month. You have £2,500 saved and keep £1,000 for emergencies, so £1,500 goes to HMRC straight away. The remaining £6,500 at £350 a month takes about 20 months, with roughly £447 of interest.

Limits

  • Interest is estimated as simple interest at today's rate; the rate changes with the Bank of England base rate.
  • HMRC makes the final decision on affordability and may ask for more evidence.

Reading the charts

Each chart redraws as you change the inputs and uses the same calculation as the result above. Choose "Show data" for the exact figures as a table, or download them as a CSV. "Copy link" saves your numbers in the page address so you can come back to the result or share it; nothing is sent to us.

Official sources

Figures last reviewed .

Frequently asked questions

What is a Time to Pay arrangement?

A payment plan with HMRC that lets you pay an overdue tax bill in monthly instalments. HMRC checks the plan is affordable; if you can't agree one, it will ask you to pay in full.

How much will HMRC ask me to pay?

HMRC bases it on what you have left each month after rent, food, utilities and fixed outgoings, and says it will usually ask for around half of that. You can offer to pay more, which reduces the interest.

Is there a maximum length?

No. GOV.UK says there is no time limit on how long a payment plan can last; it depends on how much you owe and what you can afford. Many people assume 12 months, but that isn't a rule.

Do I have to use my savings?

If you have savings or assets, HMRC expects you to use them to reduce the debt as much as possible. A pension pot isn't counted as savings.

Will I still pay interest?

Yes. Late payment interest runs on the unpaid tax until it's cleared. The rate is the Bank of England base rate plus 4%, which is 7.75% from 9 January 2026.

What if I can't afford anything?

Contact HMRC and get free debt advice, MoneyHelper in England and Wales, Scotland Debt Solutions or Advice NI. HMRC accepts a Standard Financial Statement prepared by a debt adviser. If you don't engage, HMRC can use debt collectors, take money from wages or bank accounts, or start court action.

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Self Assessment PenaltiesEstimate late filing and late payment penalties and interest on a Self Assessment tax bill.IVA EligibilityCheck whether an Individual Voluntary Arrangement could suit your tax and other debts, and whether one creditor could block it.Payments on AccountEstimate your January and July payments on account and balancing payment.
Disclaimer: This tool gives a general estimate based on what you enter and the published rules. It is not tax, legal or financial advice, and the tax authority makes the final decision. Speak to a qualified professional before acting. See our disclaimer.