TIME TO PAY (TTP)

TIME TO PAY ARRANGEMENTS

Inability to meet VAT or PAYE payments is usually the first warning sign to HMRC that a business is insolvent. HMRC will be alerted quickly should your company fail to make payments and investigations will likely ensue around your company. Due to the Covid-19 Pandemic HMRC are likely to be sympathetic and would be willing to consider affordable repayment plans. It is worthwhile considering the below points beforehand.

• Payments to ongoing taxes must be maintained, otherwise HMRC will terminate the Time to Pay Arrangement .
• If you have failed a Time to Pay Arrangement (TTP) before, HMRC are unlikely to grant you another.
• Offers to HMRC must always be realistic.
• 12 month TTP’s are most frequently agreed. However due to Covid-19 Pandemic longer arrangements have been accepted.
• Failure to maintain payments will result in HMRC terminating the agreement and expect the amount of tax to be paid in full.
• The TTP Arrangement will need to clear the balance in full. As it does not allow for discounted repayment amounts.

Therefore, it is imperative that you seek the help of a professional at the initial stages to assist you with upcoming or current HMRC liabilities. The earlier you act the more time we will have to assist in negotiating an extension. If you simply wish to know what your options are, talk to one of our advisors today.

A TTP can be agreed without professional help. However, a free initial consultation with Bridgestones, often helps to consider all the options before deciding on a Time to Pay Arrangement. It is important that any Time to Pay Arrangement with HMRC is realistic and does not default. Our expertise in negotiating with HMRC could also be vital to you and your business.

If you have already received correspondence from HMRC in the form of a winding up petition or statutory demand, it’s imperative that you act in a quick manner and take action now to give your business the best possible chance of survival.

Bridgestones are a leading north west firm of licensed insolvency practitioners, who are able to assist directors avoid the potential of winding up your company.