time-to-pay arrangement

Time to Pay Arrangements with HMRC

23/11/2022tax , Tax Issues , Tax News and Tips , Tax Saving Tips , Taxation

There are several companies and organisations in the UK that fail to meet the deadlines of the tax bills. If you are also one who is carrying out a business in the UK and struggling with the tax bills, you might be offered an instalment plan by the HMRC to pay your tax bills easily. This will allow you to get your payments cleared by having a long period of time and in form of instalments. To avail of this opportunity, you must have a basic understanding of the time-to-pay arrangement.

This article will turn out to be helpful in this regard and you will be able to gather information about what is time-to-pay arrangement, what is the criteria to check eligibility, how can you negotiate with HMRC, and how to apply for the instalment plan.


Reach out to one of our professionals to get to know what is the time to pay arrangement HMRC for your business in the UK. Get in touch now and get your queries answered quickly. 


What is the Time-to-Pay Arrangement with HMRC?

The time-to-pay arrangement refers to a kind of agreement that is working between the taxpayers and HMRC in case you fail to pay the tax. This allows you to pay the tax in instalments by availing of a long period of time. This is an agreed duration of the period that is specified for the payment plan. This plan can work for all kinds of taxes, however, it is most commonly used for the sake of corporation tax.

The companies use it for the payment of VAT and PAYE. If you are a limited company that is struggling with short-term cashflow difficulties, the time-to-pay arrangement is your handy solution. However, for the companies that have a usual habit of having tax problems and paying the tax late, HMRC will not entertain the instalments for such cases.


What are the Criteria to Check Whether I am Entitled to Get a Time-to-Pay Arrangement?

The main thing to consider for the HMRC when a company applies for the time-to-pay arrangement is that the company needs time to clear the payment in an easy way or to find an escape from the tax bills. When a company applies, it has to prove the genuine reasons with shreds of evidence that can explain the reason why it can not pay the tax bills at the moment. The genuine shreds of evidence will be able to make HMRC feel considerate about the case to approve the time-to-pay arrangement.

Moreover, the payment history from past records will also be checked by HMRC. HMRC takes decisions after checking the ability of a business to pay the instalments by its financial positions. Also, the chances of future tax bill payments will be considered by HMRC.


Is there a possibility of Negotiation?

There is a limit to the matter of negotiation but HMRC is flexible for this. This is not the idea to put more pressure on a business that is already going through a rough patch. This means that HMRC is open to negotiating in such hard circumstances of a business. You can even hire a professional to do the job on your behalf. Because HMRC will respond well to a person that has a better understanding of their rules.


How Can I Apply for the Instalment Plan to Make the Payments?

It is recommended by HMRC that the requirement is made through a phone call. This makes it easy for HMRC to confirm it is not spam and to gather the required information to carry on the process. You can get in touch with HMRC by using their helpline number. People consider the option of reaching out to the experts to arrange the negotiation with HMRC as well.

Moreover, before you decide to make the phone call, you must have the following details with you:

  • The cash flow details of the company
  • The forecast figures for the upcoming months

This will allow you to make a better agreement for the instalments with HMRC. This will further help HMRC to know that you have a good record of the tax bills and relevant payments.


The Bottom Line

Now that you have gathered a fair amount of information about the time-to-pay arrangement HMRC, we can bring the discussion towards wrapping up. The business that is going through the struggling phase will have to prove the genuine reasons behind it to HMRC before expecting the payment plan and the flexibility of the HMRC. We hope these few minutes of reading will help you to develop a better understanding and you will be able to deal with the business struggles well in the future.


Get in touch with our young, clever and tech-driven professionals if you want to choose the best guide for the time-to-pay arrangement HMRC for your business in the UK.


Disclaimer: The information about the time-to-pay arrangement HMRC for your business in the UK provided in this blog includes text and graphics of general nature. It does not intend to disregard any of the professional advice.

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