As the festive season approaches, HMRC is encouraging individuals to plan their finances carefully to avoid unnecessary stress. The advice includes setting a budget for Christmas expenses and considering options to spread the cost of self assessment tax bills due in January.
HMRC recommends taxpayers explore its Budget Payment Plan, which allows users to pay tax in manageable instalments throughout the year, potentially easing the financial pressure of the January deadline.
Additionally, taxpayers unable to pay their self assessment bill in full may be eligible for a Time to Pay arrangement, enabling them to spread payments over a longer period.
The guidance also highlights the importance of timely filing for self assessment tax returns, which ensures individuals avoid penalties and have clarity on their financial obligations.
With Christmas often stretching household budgets, HMRC’s practical advice aims to promote financial wellbeing during the busy holiday period.
Angela MacDonald, deputy chief executive and second permanent secretary at HMRC, said:
“We understand Christmas can be an expensive time. Budgeting and planning can make all the difference. We’re here to help with practical solutions to ease the financial strain.”
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