Updated: 5th February 2020
There are many different ways to deal with the pressure of being unable to meet your tax obligations as a company. One possible solution is referred to as a HMRC Time to Pay Arrangement. To find out more about the associated processes and how they might help your company click the video below.
If your business has tax problems, like arrears of PAYE and VAT, it might be the case that your company is insolvent and taking immediate action to resolve these issues is advised. One particular option that could be available to your company is the Time To Pay arrangement.
This is where HMRC allows the company time to pay its taxes provided they are happy that the company adheres to this arrangement and repays all sums owed in full in a period to be agreed. You will need to convince them that this can be done in the stated time period. The company will need to put forward a reasonable proposal that sets out exactly what it is able to pay and back it up with evidence that these payments can be met.
If it can be proven that your business is expected to weather its current economic storm, there is a good possibility at HMRC will grant you extra time to make tax payments. As a guide, HMRC will generally set a 6-12 month deadline for you to pay the taxes you owe but in exceptional cases it can be for longer than 12 months.
Where a Time To Pay agreement has been entered into but payment terms have not been met, we may be able to source funding for your company to pay in full. We can also advise on other finance options and alternative arrangements to repay HMRC debt. The best thing to do is seek advice from one of our insolvency practitioners; you can do this via a free confidential consultation.