If your business is being impacted by the continuing coronavirus crisis – you are not alone. Setting up an affordable Time to Pay (TTP) arrangement with HMRC could help ease some of the financial strain on your company during these challenging times.
A Time to Pay Arrangement is a type of payment plan entered into with HMRC by a limited company or sole trader, allowing for tax arrears to be paid back through a series of affordable instalments based on your income and expenditure. Affordable instalments Up to 12 months to pay Include all tax arrears Stops further action on included debts
A Time to Pay Arrangement is a type of payment plan entered into with HMRC by a limited company or sole trader, allowing for tax arrears to be paid back through a series of affordable instalments based on your income and expenditure.
Up to 12 months to pay
Include all tax arrears
Stops further action on included debts
There is no set qualification criteria set out for Time to Pay arrangements, instead they are offered at HMRC’s discretion. HMRC will consider a number of factors including the amount of tax you owe, how much you can afford to pay back, as well as your past conduct with HMRC. You can greatly increase your chance of successfully arranging a TTP by ensuring you engage with HMRC at an early stage, as well as approaching them with an appropriate payment plan. At Time to Pay Experts we can assist you with this process using over 30 years’ experience to negotiate terms with HMRC.
Time to Pay arrangements are not new, however, in light of the escalating coronavirus crisis, HMRC has eased the restrictions making them a viable option for more businesses. HMRC are aware that many companies will be feeling the financial strain caused by the unprecedented business disruption currently being experienced and they have responded by offering these companies a helping hand when it comes to settling their outstanding tax affairs.
As a general rule, Time to Pay arrangements typically run for a maximum of 12 months, however, as HMRC are keen for delinquent accounts to be brought up to date as quickly as possible, you may be offered a shorter-term arrangement should they believe your company can afford to sustain a larger monthly repayment amount.
HMRC debts are often split over several different taxes, such as Corporation Tax, VAT, and PAYE. If this is the case then HMRC will request that all accumulated tax debts are included in any proposed Time to Pay arrangement. This benefits HMRC as you will be paying off all of your company’s tax debts at once, and this is also reassuring to you as a director as you know that all your existing tax debts are being repaid through one monthly repayment.
Your monthly instalment amount will depend entirely on your level of HMRC debt and also the amount your company can realistically afford to pay towards this. When making a Time to Pay proposal to HMRC you need to strike a delicate balance between offering an amount your company can comfortably sustain throughout the term of the agreement, while also ensuring it is a substantial enough amount that will see your account brought up to date as swiftly as possible. At Time to Pay Experts we can work with you to put together a proposal which satisfies HMRC while also remaining affordable for your company throughout the duration of the payment plan.
Time to Pay arrangements only cover outstanding debt you have to HMRC; any upcoming taxes due to HMRC will need to be paid in the usual way. It is vital that you keep up with your current tax obligations while in a TTP arrangement; fail to do so and HMRC may well cancel the arrangement and demand payment is made in full to cover both existing and past tax debts.
Time to Pay Experts have been helping company directors negotiate with HMRC for over 30 years. When entering into Time to Pay discussions it always helps to have a professional on board to conduct the negotiations on your behalf. Using our unrivalled experience, we can approach HMRC with a carefully considered proposal which takes into account your debt levels and ability to repay. We have a strong relationship with HMRC forged through years of professional dealings, meaning we know exactly who to approach, the information HMRC will want to see, and how to frame your case in the best way possible. We take care of all the negotiations on your behalf, maximising your chances of success while also allowing you to channel your energies into running your business. Following a payment plan being implemented we can keep in touch throughout the TTP term providing expert help and advice as you get your company back on track.