Are you struggling to pay your business tax arrears?
If the answer is yes, then you are not alone. Many UK businesses face challenges when it comes to managing their tax obligations, particularly in times of economic uncertainty. Even the most successful businesses will experience a dip in their fortunes perhaps as a result of bad debts, loss of a key customer or a general economic downturn.
Here at PKF, our dedicated Tax Arrears Solutions can help you negotiate a Time To Pay (TTP) plan where your arrears of VAT, PAYE or Corporation Tax can be paid in manageable monthly payments.
What is a typical period for a TTP plan?
There is no set period for the repayment plan, although 12 months is the most common length. It all depends on affordability and demonstrating viability moving forward. TTPs need to be aligned with your company’s specific financial capabilities and commitments. We have seen arrangements agreed for up to five years.
How we can help
Our specialist teams have been involved in the Time to Pay system since the outset, and piloted the TTP scheme on behalf of the Government’s ‘Small Business Service’ in 2000. Our credibility with HMRC is a big advantage when negotiating a workable TTP plan.
In addition, we draw on the expertise of PKF’s expert VAT team to ensure that HMRC’s assessment of your debt is not overstated before we proceed.
The process
Once engaged by you we will negotiate a repayment plan for your business with HMRC.
If the debt level falls below £350k, we can usually agree a TTP without the need for providing supporting financial information to HMRC. If above £350k, we will be expected to provide financial forecasts to demonstrate viability and affordability of the proposed monthly repayment. We are particularly skilled in this regard.
HMRC will usually agree to pause further action whilst we have time to prepare and submit the proposal. This may be followed by some negotiation and the submission of additional information that HMRC require to make their decision
The agreement will be formalised with HMRC and hopefully will result in repayment of all arrears over a manageable period to ensure the continuity of your business.
