Time to Pay Arrangements
3 February 2017: If your company or business is suffering from cash flow pressures and finds itself struggling to pay HM Revenue & Customs (“HMRC”) then help may be at hand. HMRC may be able to offer you more flexible, temporary terms for payment in the form of a Time to Pay (“TTP”) arrangement.
The taxes where you may seek some temporary relief include but are not limited to:
- Value Added Tax (VAT)
- Pay as you Earn (PAYE)
- National Insurance (NI)
- Corporation Tax (CT)
- Construction Industry Scheme (CIS)
Assuming you are having temporary cash flow issues and have a fairly robust plan in place to settle the debt then HMRC will give consideration to a tailored payment plan. Before approaching HMRC, and to maximise your chance of a positive outcome, you should be aware of the following points:
- All outstanding HMRC returns must be filed
- You must be unable to make the full payment of tax on the due date in order to be considered
- Is your proposal reasonable in the circumstances and considering amounts and timings proposed
- Can you repay the debt in 12 months or less
- Is the company or business viable and can it continue to trade
If you are already in a TTP arrangement or have defaulted on a current or former TTP arrangement then you may need to consider and explain what circumstances have arisen that were not foreseen at the outset and what steps are you taking to account for the changes.
The team at BRI Business Recovery and Insolvency provide advice to directors, shareholders and individuals. If you feel that you are struggling to pay your debts then act now and talk to someone who knows the facts about the options available to you. There are always options but understanding the implications and benefits of each can be a minefield. If you want someone to help you through those difficult times then please do contact one of the team at BRI. For a no obligation, confidential and free discussion check out our website and find your nearest office and advisor. Alternatively please call our head office in Northampton on 01604 754352.