Behind with HMRC PAYE, NIC and VAT Payments? Time to Pay Arrangements

If you do not pay your tax or VAT on time, you will have to pay interest on the outstanding amount. You may also have to pay a penalty or surcharge. Do not hesitate to contact Altion Law for guidance and advice if you are struggling.   Altion Law litigators have experience in negotiating with such matters. What we have noticed in recent years, particularly since the COVID-19 pandemic, is that HMRC’s officers need a lot more persuading and changes are not always accepted to these plans. HMRC are taking a harsher line than they perhaps did in the past. So it’s more important than ever to get your strategy right from the outset.

If you are in any doubt about whether your Time to Pay proposal is realistic or would like help negotiating with HMRC, for a confidential free discussion, call us today on 01908 414990,  alternatively email us at Hello@altion-law.co.uk or complete our Free Enquiry Form and we will call you back.

VAT payment plans

Have you got behind with your VAT payments? Do you need extra time to pay?

If you’re experiencing cash flow difficulties, you might be able to negotiate a payment plan. If HMRC agrees with your proposal, this would enable you to pay the VAT you owe in instalments.

You would need to apply for what’s known as a Time to Pay arrangement.

Time to Pay arrangements allow companies to pay outstanding corporation tax, PAYE, national insurance or VAT liabilities by direct debit in agreed instalments. The plan will usually last 6 or 12 months but in exceptional circumstances could last slightly longer.

A Time to Pay arrangement could buy your business valuable breathing space and help avoid VAT surcharges or penalties. But you should be aware that you will have to pay more in the long run. Because you would be paying late, your business would have to pay interest on the outstanding amount.

You will also need to make sure you keep your payments up to date and pay any other taxes you owe on time. If you don’t, HMRC will usually cancel the arrangement and take legal action against your business straight away.

When would HMRC agree to a Time to Pay arrangement?

For HMRC to allow you extra time to pay, it would need to be convinced that you genuinely cannot pay in full now but will be able to pay in the future.

You’ll have to put together a strong case. To persuade HMRC, you’ll need to present a realistic proposal backed up by supporting evidence.

What we have noticed in recent years, particularly since the COVID-19 pandemic, is that HMRC’s officers need a lot more persuading. They are taking a harsher line than they perhaps did in the past. So it’s more important than ever to get your strategy right from the outset.

If you are in any doubt about whether your proposal is realistic or would like help negotiating with HMRC, for a confidential free discussion, call us today on 01908 414990,  alternatively email us at Hello@altion-law.co.uk or complete our Free Enquiry Form and we will call you back.