To enter an HMRC Time to Pay arrangement, you must be able to satisfy HMRC as you have a good reason for not having paid on time or why you won`t be able to pay on time. Such agreements are not envisaged for companies that simply want to spend their money elsewhere. The condition that companies often encounter difficulties is the full payment and maturity of future tax debts. In situations where the payment deadline agreement also covers future maturities, HMRC may consider including these future commitments in the agreements. If this is not the trap, you will have to be content to be able to honor these future debts, as their late payment could lead to the termination of the contract. Not at the same time. In exceptional cases, it may be possible to renegotiate an existing HMRC time to pay arrangement, or if an agreement is successfully reached, then yes, you may still be able to conclude a new agreement in the future. Pay Time (TTP) is a legal agreement in which you propose and make a plan in installments to distribute the money you owe to HMRC into payments over an agreed period. Although each agreement is evaluated by HMRC on its own merits, there are a few typical elements: if your circumstances change during the agreement, you must inform HMRC immediately. They may terminate the contract if your new circumstances do not meet the TTP criteria. HMRC may enter into another term agreement to be paid when other debts mature, but they will look at the company very carefully before doing so, and that should not be used as an approach. An agreement between HMRC and the subject indicates that taxes can be paid over an agreed period and not on a lump sum. HMRC is bound by TTP agreements that it concludes, but is allowed to resign if: If you have not had another TTP agreement, HMRC is open to structured payment plans for a period of 12 months or less.

It is very important that you ensure that the agreed payments are paid on time and in full – which means that when negotiating the agreement, you have to be sure that the agreed amounts are actually affordable. A default puts the company in a very serious situation and HMRC will take enforcement action. Normally, these TTP agreements are penalized at 3.5%, but according to Chancellor Rishi Sunak`s latest budget, this is cancelled for the duration of the virus. If your company has experienced financial difficulties as a result of the coronavirus outbreak, contact our time-to-pay team for immediate advice and assistance in the payment deadline agreement with HMRC. Our experienced team and strong relationship with HMRC means that such an agreement is more likely to be approved and that we have a high success rate to avoid tax penalties. We can also advise you if HMRC Time to Pay is right for your business. Don`t be pressured to agree on a monthly amount that you simply can`t fill out during your time to pay for the HMRC agreement. A time-to-pay agreement is a method of distributing your business tax payments over a long period of time in a more affordable way.