HMRC Time to Pay Arrangements
“If I fall behind paying my HMRC bills, what options do I have?“
The HMRC are the biggest source of court orders in the UK and the most consistent creditor your company will have.
It cannot be overstated that if your company can’t pay its tax bill, contact HM Revenue and Customs (HMRC) as soon as possible.
If you are up front and honest about your company’s ability to meet its tax demands the HMRC will offer you a Time to Pay arrangement.
A Time to Pay allows fixed repayments of a tax debt to be made over an agreed period and can be considered for all types of tax debt.
To guarantee that it can recover all payments due in full, HMRC will consider certain criteria, including the taxpayer’s previous payment history and their plan for repayment, before agreeing to this arrangement.
Penalties can be avoided if a Time to Pay arrangement is agreed before the due date.
Your bill will be paid in instalments by direct debit.
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What happens if still can’t pay?
Once in place, the arrangement will be monitored and if it is not kept, HMRC may resort to other options, such as enforcement action, to collect the debt.
HMRC can also remove personal or business possessions to be auctioned, take court action, or start insolvency proceedings.
How do I contact HMRC and what do I need?
HMRC can be contact via phone and online, details can be found here
Before you call you’ll need to have specific information ready, this includes:
- your reference number (eg 10-digit unique taxpayer reference, VAT reference number etc)
- your bank account details
- the amount of the tax bill you’re finding it difficult to pay and the reasons why
- what you’ve done to try to get the money to pay the bill
- how much you can pay immediately and how long you may need to pay the rest
Based on your answers, the state of your company’s finances and your plans to meet your tax commitments, the HMRC may offer you an arrangement.
It also Important to note that if your circumstances change at any time during the arrangement that you contact HMRC and keep them informed.
At UKBR, we are on hand to give you a comprehensive advice on all HMRC matters.