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.

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.

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

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

This should improve business cashflow problems 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, from our law firm in London we explain it for your information.

1.  A debt repayment agreement 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.