Time To Pay Arrangement

Debt has an immediate effect on a company’s cash flow so HMRC payments can end up getting pushed down a company’s list of priorities.
Bills such as wages and rent payments often seem more urgent, and consequently falling behind on payments to the HMRC can happen.
This is potentially extremely dangerous for a business and a Time To Pay Arrangement is a way to avoid this risk.

Benefits of a Time to Pay Arrangement

  • Liabilities are spread out over a period of 6-12 months (exceptions can be made for this to be longer).
  • A Time To Pay Arrangement also shows HMRC that you are serious about paying your tax, making it less likely they will try to take legal action against the company.
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What is a Time To Pay Arrangement?

Time To Pay Arrangements were introduced in 2008 to help companies handle their HMRC tax better by offering the option to pay in instalments.

Liabilities are spread out over a period of 6-12 months (exceptions can be made for this to be longer).

This should improve cash flow and make critical payments such as wage and rent more bearable.

A Time To Pay Arrangement also shows HMRC that you are serious about paying your tax, making it less likely they will try to take legal action against the company.

How does a Time To Pay Arrangement work?

1

A repayment proposal is drawn up and sent to HMRC, giving details about the company’s circumstances and information about when payments can realistically be paid.

2

It’s worth getting in touch with Hudson Weir as soon as you’re at the stage of considering a Time To Pay Arrangement. Then we can help you write a perfect and professional proposal.

Having us involved from an early stage will also help our experienced consultants evaluate the proceedings with greater accuracy.

3

The company will then be called into the HMRC tax office to compose a structured payment plan.

Before acceptance, HMRC must be convinced you will stick to the proposed payment structure.

4

The intervals at which the business pays and the amounts to be paid must be backed up with evidence explaining why they are appropriate.

5

Once agreed to, the Time To Pay Arrangement will take place over a specified time, concluding once all repayments and tax arrears are repaid.

What if the proposal is refused?

A proposal is likely to be refused if HMRC do not believe it will be repaid or believe it can be paid in a single instalment.

This is why it is important you use Hudson Weir consultants to help you draw up a Statement of Affairs and other such documents to provide evidence that backs up your claims.

If the proposal has been refused already, then a Company Voluntary Arrangement may be the next step.

Otherwise there may be other options available, on which Hudson Weir can advise.

What if I miss Time To Pay Arrangement instalments?

Missing repayments is problematic. HMRC may seek legal action against your company because you have failed to comply with the agreed plan.

If you realise you are going to miss any payments please contact Hudson Weir immediately.

We cannot stress enough how important this is – our professional practitioners are experienced in Time To Pay Arrangement negotiations with HMRC and we could make a huge difference to the outcome of the result.

We will work with you to restructure your plan and look to gain HMRC approval, helping you negotiate your way out of that hot water!

We will sit next to you at the table and stand by you.

If you are thinking about a Time To Pay Arrangement, all you need to do is get in touch with Hudson Weir.

Call us on 020 7099 6086 or

Request a Call

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Hudson Weir are an established firm of Insolvency Practitioners who specialise in business recovery and corporate financial solutions. Hudson Weir provides industry leading, nationwide services for its clients with the intention of easing financial pressures and providing recovery strategies for struggling businesses.

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