If you fall behind with your tax payments including VAT, Corporation Tax, Income Tax or PAYE in some limited circumstances you can agree a Time To Pay Arrangement.
H M Revenue and Customs brought in ‘time to pay’ to help businesses that got into financial difficulties pay back their tax via agreed instalments.
H M Revenue and Customs assess whether or not they will accept a Time To Pay proposal on a case by case basis. In all cases where they agree a Time To Pay Arrangement they will expect current taxes to be kept up to date and paid on time.
Below are a few key points to consider with your Time To Pay offer and what H M Revenue and Customs expect to see:
- That you are able to prove you cannot pay all your tax at once for example you have evidence to show a bank loan for the purpose has been declined.
- That you have offered the best proposal you can stick to.
- That the time to pay period is as short as possible – in our experience they are over periods of 4 to 12 months.
- Under no circumstances will they reduce the amount of tax actually due.
- If you default on the agreement they will cancel it.