Time to Pay Arrangement
HMRC Time to Pay Arrangements
Keeping upto date with Her Majesty’s Revenue & Customs (HMRC) and paying taxes such as VAT and PAYE, is often one of the first things which director’s fall behind on when a company begins to experience cash flow issues.
Her Majesty’s Revenue & Customs (HMRC) is the most common business creditor, and the majority of insolvent companies will owe some form of debt to HMRC. The Finance Act 2020 however has amended the current insolvency regime and in consequence, HMRC will regain secondary preferential status for claims relating to taxes collected on its behalf but limited to VAT, PAYE, Employee NIC’s, and Construction Industry Scheme (CIS) Deductions.
What Is a Time to Pay (TTP) Arrangement?
A TTP Arrangement provides the platform for your debt to HMRC to be paid back depending on your business circumstances and affordability, but typically in monthly instalments, over a 12-month period.
As a Business Recovery option, negotiating and agreeing a TTP Arrangement may provide significant breathing space for business owners and directors.