Time to pay HMRC

A Time To Pay (TTP) arrangement allows you to spread your business tax payments over a longer period of time in a more cost-effective manner.

It is a method of negotiating with HMRC to give your company more breathing room and improve cash flow.

Accounting firms can assist you in negotiating a payment structure with HMRC. We can provide you with:

Advice on the best way to work out arrangements with HMRC.
Avoid large tax bills that will put a strain on your business and livelihood and will take months to recover from.
The opportunity to re-energize your business while knowing you can safely meet your monthly payments.
We have extensive experience dealing with HMRC and can assist you in understanding how to make the most of a TTP arrangement to pay your debt and alleviate your stress.

Contact our team today, and we'll go over your options and how to proceed.

Why should you go with Time To Pay?

Taking out a Time to Pay (TTP) arrangement allows you to pay your HMRC debt in monthly instalments, typically over a period of up to 12 months.

However, depending on your business's circumstances and ability to pay, some arrangements can be agreed upon for longer periods of time.

If you are having difficulty paying your tax bill, or if you anticipate having difficulty meeting your tax obligations in the future,

In that case, you should contact HMRC as soon as possible or contact the Accounting firms team for expert advice.

The existing HMRC TTP scheme will be extended to help more companies manage their tax affairs, as part of a support package announced during the March 2020 budget.

Given that the Covid-19 pandemic has severely harmed cash flow, this has been welcomed by previously profitable businesses that are now struggling to meet tax bills on time.

This is a valuable service that should be utilised. You can easily qualify, and if you don't have the time to contact HMRC directly, we can help you work out a suitable plan for you.

Contact a member of our team today and we'll explain how TTP can help you.

What Exactly Is a Time to Pay (TTP) Agreement?

While it is true that if you have conducted your tax affairs well in the past, you are much more likely to have a Time to Pay arrangement request agreed to, Accounting firms can help even if you have a poor history of compliance with HMRC.

If you require additional time to pay your tax bill, a TTP instalment plan may be a viable option for your business. Accounting firms can assist business owners and directors who are thinking about this option.

Negotiating Time to Pay with HMRC

Although HMRC states on their website that they prefer to be contacted by phone, you will often be required to submit your repayment offer and case in writing, along with copies of a cash flow.

We can assist you in explaining why you are unable to pay the amount owed as well as how much you can offer as a monthly payment.

We are happy to contact and liaise with HMRC on your behalf, utilising our expert knowledge to assist you in putting this arrangement in place.

HMRC will also want to evaluate:

your company's long-term viability

whether or not a Time to Pay plan is likely to succeed

If you are unable to stick to the plan, consider alternatives.

How Time to Pay Functions

The total amount of tax owed is not reduced by a TTP arrangement. It simply allows the balance to be paid off in instalments.Customers MUST make a reasonable proposal of what they can afford over a given time period.HMRC must be satisfied that you will be unable to meet the tax deadline.If you are able to pay your tax bill in your current situation, you may be required to do so. You cannot, however, use the savings to pay for something else, such as an investment.If your company's financial situation changes, you must notify HMRC right away.The payments are to be made in the shortest amount of time possible.

Having a TTP arrangement does not guarantee that you will not be penalised for late payments. HMRC imposes penalties on those who fail to pay their tax bill on time. Furthermore, you will be charged interest on the amount of tax owed.

It's important to remember that this isn't a general financial situation for the company; if you have debts other than to HMRC, other options may be worth considering.