Yes — and you're asking the right question before the deadline, which genuinely matters.
Can you set it up yourself online? Yes, that's right. If you owe £30,000 or less in Self Assessment, you can usually set up a Time to Pay plan online through your Government Gateway account, using HMRC's "set up a Self Assessment payment plan" service. You need to have filed your tax return first, and you'll typically be offered up to 12 monthly instalments depending on what you owe. If you owe more than £30,000, or the online service won't accept your circumstances, you can still arrange a plan by calling HMRC's Self Assessment Payment Helpline.
Do it before 31 January. This is the important bit: contact HMRC (online or by phone) before the deadline, not after. A plan agreed in advance means you avoid the late-payment penalties. If you simply miss the deadline with no arrangement in place, the penalties kick in.
Does it cost extra? Honestly: yes, a bit. Late-payment interest still accrues on the balance while you're paying it off, so a Time to Pay plan isn't free money. But interest is far cheaper than the alternative — missing the deadline without a plan triggers a 5% surcharge on the unpaid tax at 30 days late, another 5% at 6 months, and another at 12 months, all on top of interest.
Is it the sensible thing to do? Absolutely, if you genuinely can't pay in full. HMRC would much rather have a plan than a missed payment, and having an arrangement in place stops penalties accruing while you pay. It doesn't affect your credit file.
One practical tip: file your return as early as you can, even if you can't pay yet. Filing and paying are separate deadlines — filing on time avoids the £100 automatic late-filing penalty, and you need the return filed before you can set up the online payment plan anyway.
