Time To Pay (TTP) arrangements

If you are struggling to pay your tax bill a Time to Pay (TTP) arrangement could be a viable option.

A Time to Pay arrangement is an agreement between a taxpayer and HM Revenue and Customs (HMRC) that allows the taxpayer to pay their tax debt in instalments over an extended period of time dependent on individual circumstances and affordability.

We always suggest seeking advice as soon you are aware your tax payment to HMRC will not be paid.

The idea behind a Time to Pay arrangement is to offer some much needed breathing space for those taxpayers who are experiencing financial difficulties and are unable to afford to pay their tax bill in full by its due date. A TTP arrangement can free up some cash to get things back on track whilst not getting further into debt.

Contact HMRC or visit their website page on how to pay a debt to HMRC with a Time to Pay arrangement

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In order to negotiate a Time to Pay arrangement with HMRC you will need to be transparent with your financial situation, confirming your income and outgoings, ensuring an affordable payment plan is put forward. Setting up an agreement that is not realistic will only end up with the company being in more trouble later down the line. HMRC are there to help and will be considerate of your personal situation when agreeing a payment plan. HMRC considers Time to Pay arrangements on a case-by-case basis, taking into account your financial situation as well as your history of tax compliance. The payment arrangement from HMRC could be in the form of a monthly payment plan or even a lump sum at a later agreed date.  When it comes to requesting a Time to Pay arrangement with HMRC, just don’t leave it too late!

Our experts are here to help your business. We will explain what measures can be taken to ensure that the tax burden is minimised.  We can liaise with HMRC on a company’s behalf if a revised tax payment plan is necessary to sustain the business; we can also mitigate this against any tax refunds due. A Time to Pay arrangement will be between yourself and HMRC and your responsibility to upkeep.  

It is important to note that interest and penalties may still be charged on the outstanding debt while a Time to Pay arrangement is in place, and failure to meet the agreed-upon payment plan may result in further enforcement action by HMRC.

Therefore, if you are struggling to pay your taxes perhaps due to unexpected expenses or temporary cash flow issues a Time to Pay arrangement from HMRC is a way to spread the outstanding tax liability over a negotiated period of time.
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