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 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 arrangements allows all forms of tax debt to be repaid in an agreed time period. The repayment amount is fixed.
For the HMRC to consider a TTP, your business will have to submit a payment plan and have its payments record closely scrutinised before any decision can made.
Your bill is paid in instalments by direct debit.
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What happens if I 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?
You can contact the HMRC can be via phone or 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.