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. HMRC`s criteria are quite rigid. You prefer that you haven`t had time to pay for the arrangement before, even if it`s not impossible to get a second time. HMRC has published the details of the specific helpline to contact, but it is not known whether HMRC will change its usual approach to payment time for taxpayers who have difficulty paying. No agreement is perhaps better than a prohibitive agreement: it is often better to make a phone call with HMRC after the impossibility of reaching an agreement rather than accepting an agreement that the company cannot afford. If a time is not met for the payment of an agreement, it is difficult to get HMRC to reinstate it and HMRC will instead be reluctant to enter into agreements in the future. If circumstances change, it is advisable to contact HMRC before no payments to renegotiate the agreement.
If a formal payment period cannot be reached, the taxpayer is generally advised to pay what he can do if he can, since he is willing to pay and this may delay further enforcement action on the part of the HMRC (this approach may not be appropriate when insolvency is likely and additional advice is needed in this situation). Once you have put together a strong argument for an additional payment period, you must call HMRC or seek the assistance of a professional judicial administrator who will negotiate on your behalf. What if we can`t pay our VAT or PAYE bill to HMRC on time? What can we do… 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. What debts to prioritize: HMRC is generally more willing to agree time to pay income-based taxes, such as income and corporate taxes, than for taxes such as VAT and PAYE employees and national insurance premiums that companies actually take on behalf of the public treasury. The usual recommendation is to give priority to the payment of VAT and employer debts, since the HMRC follows them more actively. We do not yet know whether that will change in the current situation; It has been speculated that the government may be prepared to focus aid on VAT and employer commitments, but no announcement has been made. If you can`t pay your taxes on time, you have the option to negotiate… Very occasionally, HMRC decides not to follow the payment of a tax bill.
This is sometimes called remission. The tax is not permanently depreciated, but you do not receive any other claims unless your circumstances improve unexpectedly. Make sure returns are up to date: HMRC is more likely to agree on payment time when returns are up to date and appropriate accountability has been established. First, when considering the possibility of a TTP agreement, HMRC will assess the continued viability of the company concerned.