COVID-19: Deferring your tax payments with HMRC’s Time to Pay scheme
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Service: We have had a number of queries from clients and contacts about TTP since then, so have prepared the following Q&A to help you understand the operation of the scheme and to better understand whether it can apply to your business.
What is TTP?
TTP is operated by HMRC, through a helpline, with the aim of agreeing arrangements on delaying the payment of tax liabilities. It has been in existence for a number of years, although it has been expanded recently to specifically cover the difficulties caused by coronavirus. The agreements under TTP are reached on a case by case basis and are tailored to individual circumstances and liabilities.What businesses are covered?
All businesses across all sectors of the economy are covered, whether operating as companies or self employed. TTP does not just apply to retail and leisure businesses.What taxes are covered?
Most taxes are covered – including PAYE & National Insurance, VAT, Corporation tax and income tax.Does my business need to be in actual arrears before I can use the service?
No. In fact, it is preferable that you contact the helpline before you get into arrears.What assistance can I expect from the service?
A TTP arrangement will typically allow you to spread your tax payments over a longer period of time than would otherwise be available and can help with late payment penalties. It will also mean you should avoid legal proceedings for recovery of unpaid taxes.Who should contact the helpline?
The service is offered to businesses rather than their advisers, so a senior person within the organisation should make the initial call.What should I do before making the call?
You should be prepared with the following information:- your reference number (for example, your 10-digit Unique Taxpayer Reference or VAT reference number)
- the amount of the tax bill you are finding it difficult to pay
- how much you can pay and how long you may need to pay.