HMRC takes its responsibility seriously to make sure that individuals and businesses who can pay, do so on time. They provide extra, bespoke support to those facing financial hardship or who have personal difficulties.
If you’re finding it difficult to make a tax payment you should ask HMRC about affordable monthly payment options, called a Time to Pay arrangement. They will always try to work with you to negotiate a time to pay arrangement for tax you owe based, on your income and expenditure.
Time to Pay arrangements are based on the specific financial circumstances of whoever owes a debt, so there is no ‘standard’ Time to Pay arrangement. They will look at what you can afford to pay and then use that to work out how much time you need to pay.
A Time to Pay arrangement can cover all outstanding amounts overdue, including penalties and interest.
The arrangement is designed to be flexible and is not a fixed, formal contract and can be amended over time, should your circumstances change.
Please take note.
- HMRC are now back fully chasing businesses and individuals for arrears of VAT, PAYE, Corp Tax and Self Assessment
- HMRC Field Force Agents are back calling on businesses and individuals unannounced.
Individuals
HMRC will decide your ability to pay using an ‘income and expenditure assessment’ form. This looks at your income, disposable assets and expenditure to help them work out your disposable income.
HMRC typically expects you to pay no more than 50% of your disposable income. This may be higher if you have a very high disposable income. There’s no upper limit on the amount of time that someone can have to pay.
Businesses
Business finances are often complex, so they’ll ask you to tell them what you think the business can afford to pay.
After they have looked at your proposal, they’ll ask you questions about it to make sure it’s affordable and pays off the debt as quickly as possible.
The length of the arrangement will depend on:
- How much your business owes
- The business’ financial circumstances
The arrangement will be reviewed regularly and can be adjusted over time.
For more information click https://bit.ly/44rZgta
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