Many of us are facing self assessment tax payments on 31 January 2011; in these difficult economic times more than a few of us are going to find we need assistance in making payment on the due date. Before you reach for the phone to extend your overdraft, or take out your credit card, don't forget you can always approach HMRC and seek Time To Pay.
Rumour has it that the taxman has tightened up his approach - credit will not be so readily available this coming year.
If you know what your tax payment is going to be and if your cash flow needs support in making the payment, call the Time To Pay team now. And of course call us if you'd like help negotiating terms with HMRC.
The Business Payment Support Line is: 0845 302 1435 - lines open seven days a week.
For your information we have copied into this article the principles HMRC will follow when considering each case:
"Time To Pay (TTP) arrangements fall within the scope of HMRC’s discretion provided the following principles are followed:
- Objective criteria are applied in each case
- TTP arrangements are entered into on a case by case basis
- TTP is only agreed where HMRC is satisfied that the customer cannot pay their liability on the actual due date(s)
- The customer offers the best payment proposals that they can realistically afford. If their ability to pay improves during the TTP period then they must contact us and increase their payments/clear the debt
- TTP is only agreed where HMRC believes that the customer will have the means to pay the taxes included in the TTP arrangement and any other taxes outside the arrangement which become due during the TTP period
- The TTP period is as short as possible
- The same principles are applied to all taxpayers, although the detail of processes can be tailored to reflect the risk/return associated with different liabilities. As a rule the larger the liability the greater the risk and the greater the need for more information.
Under no circumstances can HMRC ever reduce the amount of tax due as part of a TTP arrangement.
If repayments of tax become due during the TTP period HMRC must offset these against the debt. HMRC cannot on the one hand allow TTP whilst at the same time issuing a repayment of tax.
We can only agree TTP based on the customers means to pay and can’t base it on other factors. For instance we can’t allow TTP on the basis that a business could invest this money to produce greater payments of tax in the future.
For business taxes the TTP duration should be less than 12 months. Exceptionally periods in excess of 12 months can be considered.
Applicable interest will always be charged when payments are received after the due date, irrespective of whether TTP has been agreed or not.
HMRC is bound by TTP agreements that it enters into but is entitled to withdraw if
- new facts come to light that don’t support TTP
- the customer has misled us or been untruthful
- the customer defaults on the arrangement or does not satisfy the conditions of their TTP
- any other reason comes to light where it becomes apparent that tax is at risk"
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