If you do not have another TTP agreement, HMRC is open to structured payment plans for a period of 12 months or less. The content of the time-to-pay agreement depends entirely on the circumstances, but it will be provided as a general guide: the condition that companies often find difficult is to pay future tax liabilities in full and on time. In situations where the time-to-pay agreement also covers future maturities, HMRC may consider including these future commitments in the agreements. If this is not the case, you must be sure that you will be able to honor these future commitments, as their late payment could lead to the termination of the contract. Even if an HMRC CVA doesn`t encourage people to accept your offer, it can be exactly what your business needs. Here`s an example of how refusing a time-to-pay deal has benefited one of our clients a lot: HMRC will want to make sure you`re not intentionally trying to avoid your tax debts. When balancing the risk of taking extra time for payment, they also take into account the industry you work in and their overall repayment history. Overall, these agencies have the same powers as HMRC to agree on a payment period of up to twelve months. But they are not tax specialists and they may not understand how the debt was contracted. All questions relating to the amount should be asked directly to HMRC. TTP aims to provide additional time for companies that are struggling financially, not those who want to use the money elsewhere (e.g.
B for expansions or investments). Essentially, you need to be willing to pay, but not be able to do so at this point. You should also keep in mind that HMRC will insist that all other current taxes be paid immediately upon due date. Finally, it makes little sense for HMRC to accept a deadline for the payment of VAT if you do not pay corporation tax. HMRC prefers to repay the debt quickly, so the majority of agreements are valid for periods of less than one year, with the largest number for periods of less than six months. It is possible to negotiate longer repayment terms, but you must have a strong argument for them to consent. If DM or a collection office commissioned by HMRC accepts your request for payment, you must receive written confirmation of this. If you receive an oral agreement, you should have it confirmed in writing. If not, there could be difficulties later if there is a dispute over what exactly has been agreed. HMRC`s criteria are quite rigid.
You prefer that you have not had time to pay before, while it is not impossible to get it a second time. It`s worth spending some time to make sure you can afford to pay the current refunds of taxes due. You should be prepared for the phone call – the company`s cash flow figures and forecasts for the coming months will help you provide a good argument in favor of the deal. It will also help you ensure that you do not commit to making payments that are too painful for the company to meet you within the agreed timeframe.. . . .