Under financial pressure? How to arrange more time to pay with HMRC

First published on 18 March 2020 by Alastair
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As a result of the coronavirus outbreak there may be a strain on your business to meet its financial obligations.  However, in order to ease the burden it may be possible for you to request a Time to Pay (TTP) arrangement with HMRC.  A TTP arrangement will provide your businesses with some additional breathing space during these uncertain times to enable you to settle your existing tax liabilities. For many businesses, this could be invaluable. 

More specifically, a TTP will allow you to settle your current tax liabilities in monthly instalments which are agreed with HMRC.  Typically, this means you can spread your payments over a period up to 12 months, depending on your financial circumstances. In order to set up the TTP you will to contact HMRC on 0800 0159559, at which time they will talk you through your business’s current financial position and set a monthly amount that you both agree that would be manageable for you.

Before you contact HMRC you’ll need to know:

  • Your reference number (i.e. your 10 digit Unique Taxpayer reference, VAT reference or PAYE reference)
  • The amount of tax bill you’re finding difficult to pay and the reasons why
  • What you have done to try and get the money to pay the bill
  • How much you can pay immediately and how long you may need to pay the rest
  • Your bank details

HMRC will ask you about:

  • your income and expenditure
  • your assets, like savings and investments
  • what you’re doing to get your tax payments back in rider

As you can imagine the HMRC helpline may well be busy when you telephone but please persevere!

Julie Downie, Accounts Manager

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