Time to Pay (TTP) HMRC

A Time To Pay (TTP) arrangement allows you to spread your business tax payments over a more extended period in a more affordable way.

It is a way of negotiating with HMRC to give your business more breathing space and allow cash flow to improve.

Future Strategy can help you work out a payment structure with HMRC. We can give you:

• Advice on the best arrangements to work out with HMRC.
• Avoid high tax bills which put pressure on your business and livelihood and take months to recover from.
• The space to re-energise your business in the knowledge that you can safely meet your monthly payments.

We’re experienced in dealing with HMRC and can help you understand how to make the most of a TTP arrangement to pay your debt and ease your worry.

Contact our team today, and we’ll explain the options available and how to proceed.

Why choose Time To Pay?

Taking out a Time to Pay (TTP) arrangement allows for your HMRC debt to be paid in monthly installments, typically over up to 12 months.

Although depending on your business circumstances and affordability, some arrangements can be agreed upon over longer periods.

If you are having trouble paying your tax bill, or you foresee that you may struggle to meet your tax obligations in the future

In that case, you should contact HMRC at the earliest opportunity or get in touch with the Future Strategy team for specialist advice.

As part of a support package announced during the March 2020 budget, it was confirmed that the existing HMRC TTP scheme would be extended to help more companies to manage their tax affairs.

Given cash flow has been severely weakened by the Covid-19 pandemic, this has been welcomed by previously profitable businesses now struggling to meet tax bills on time.

This is a service that is well worth taking advantage of. You can qualify easily, and we can help work out a suitable plan for you with HMRC if you lack the time to contact directly.

Contact one of our team today, and we’ll explain how TTP can work for you.

What Is a Time to Pay (TTP) arrangement?

While it is true that you are much more likely to have a Time to Pay arrangement request agreed to if you have conducted your tax affairs well in the past, Future Strategy can help even if you have a poor history of compliance with HMRC.

If you need more time to pay your tax bill, a TTP installment plan may be a viable solution for your company. Future Strategy can offer support to business owners and directors who are considering this option.

Negotiating Time to Pay with HMRC

HMRC states on their website that they prefer to be contacted via telephone, but often you will be required to produce your repayment offer and case in writing, along with copies of a cash flow.

This is something we can help with and assist you in explaining why you are unable to pay the amount owed and how much you can offer as a monthly payment.

We are happy to contact HMRC and liaise with them on your behalf, using our expert knowledge to help you get this arrangement in place.

HMRC will also want to assess:

• the long-term viability of your company
• whether a Time to Pay plan is likely to be successful
• alternatives if you are unable to keep to the plan.

Our Future Strategy team has vast experience in dealing with HMRC and negotiating TTP arrangements for our clients. 

How Time to Pay works

• A TTP arrangement does not reduce the total amount of tax owed. Instead, it simply allows for the balance to be cleared in installments. 
• Customers MUST make a reasonable proposal of what they can afford over a specific time period.
• HMRC needs to be satisfied that you will not have the ability to meet the tax due date.
• If you can pay your tax bill in your current situation, you may well need to. However, you cannot use the savings to pay money elsewhere, such as an investment.
• If your company’s financial circumstances change, you must notify HMRC immediately.
• The installments are to be over the shortest time period reasonably possible.

Having a TTP arrangement does not mean that you won’t face late payment penalties HMRC imposes on those who do not pay their tax bill on time. In addition, you will be charged interest on the amount of tax outstanding.

It’s important to remember this is not a financial situation for the company on the whole – if you have debts other than to HMRC, then other options may be worth considering.