Delay penalties: One of the benefits of a formal payment period is that late penalties are not calculated when the agreement is in effect on the date the penalties are triggered. We do not yet know whether, in the current situation, HMRC will be more inclined to waive late penalties, but the Helpline page suggests that the lifting of sanctions will at least be considered. 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. To speak with time, to pay specialist, contact us today on 08000 746 757; Or you can speak to Sue, our senior consultant, on 07949 969 006. You can also use the Live Support feature at the bottom right of this page. 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. Remember that the most important condition is that your business is not able to pay its taxes on time. HMRC will not approve a TTP agreement for any other reason. If your business is struggling due to the impact of COVID-19, a time-to-pay agreement could provide the rest period you need in these difficult times. Our experienced business recovery team at Begbies Traynor advises you directly by phone or face-to-face – and always with confidence. The TTP is intended to provide additional time to businesses with financial problems, not to those who want to use the money elsewhere (i.e.
for expansion or investment). Essentially, you have to be willing to pay, just not able to do it at this point. A typical HMRC payment period lasts twelve months and all other taxes must be paid when due, or a HMRC period for payment will be late. Even if an HMRC CVA doesn`t encourage you to accept your offer, it can be exactly what your business needs. Here is an example where the refusal of a time-to-pay agreement has benefited one of our customers: the payment plan must be agreed no later than 60 days after the january 31, 2021 due date and interest will be applied to all remaining balances as of February 1, 2021. However, if you pay the tax due under the agreement, you are not liable for late penalties, usually calculated if the tax is not paid for 30 days, 6 months and 12 months after the payment due date.