You should commit to paying with your time what you can to pay for the HMRC agreement while the matter is resolved. HMRC does not waive the right to sue taxes that they know are due, based on the fact that they could have the full amount incorrectly. DM has an obligation to review your proposal, but there is no automatic right to payment. If your company has always filed its documents on time, paid all taxes in full, and has not tried to avoid payment from HMRC, all of this will be beneficial for your case. Our team of business finance specialists works on your behalf with HMRC and has agreed to spread the cost of tax arrears over a period that works for both parties. This is called HMRC Time To Pay Arrangement and can give you up to 12 months to pay your arrears and the time it takes to manage your company`s finances in a stressful time. Time to Pay (TTP) is a legal agreement in which you propose and create a payout plan to distribute the money you owe HMRC in payments over an agreed period. Although each HMRC agreement is judged on its own merits, there are a few typical elements: to speak to a time specialist, contact us again today on 08000 746 757; or you talk to Sue, our senior consultant on 07949 969 006. You can also use the live support feature at the bottom right of this page.
The condition that companies often find difficult is the full and punctual payment of future tax commitments. 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. If you can`t pay your taxes on time, you have the option to negotiate. Normally, these TTP agreements come with a penalty of 3.5%, but according to Chancellor Rishi Sunak`s most recent budget, this will be cancelled for the duration of the virus. It is unlikely that DM will accept a lump sum lower than the tax due in the event of a full settlement. But a package offer can help convince DM to accept the rest of the tax over a long period of time. In other words, if you have a compelling reason for not being able to pay and prove that your business remains viable, there`s a good chance they`ll give you the extra time. .