HMRC Time to Pay (TTP) arrangement would allow struggling businesses to repay its outstanding corporation tax, PAYE/ NI, VAT and other HMRC liabilities in installments, rather than in one go. Usually, Time to pay arrangements last either 6 or 12 months. However, they may last longer if there is a realistic prospect the debt will be repaid eventually.
What we aim to do:
HMRC liabilities will not simply disappear overnight but seeking a Time to pay arrangement has its advantages.
? We will be spreading out the repayment of debt over a period of time, rather than all at once. This will improve cash flow and ensure affected business has money to pay other outgoings such as rent, wages and suppliers. We aim to carefully examine business? management accounts and would appreciate any source of funds the business is seeking to introduce at proposal ,A debt solution company must do this to avoid debt recovery action in court ,Additionally if the business is planning for shareholders loan to company then confirm your plans and source of funds i.e. savings ,loan arrangement or help from family /friends.
? Opting for a Time to pay arrangement will demonstrate a willingness to repay liabilities. This helps business remains on good terms with HMRC.
?Proactively seeking Time to Pay will decrease the likelihood of HMRC taking enforcement action against business/company.
Our process of a Time to Pay Arrangement:
Assess the situation
it is important to explore the financial situation of the business and what will be suitable for your business. We aim to analyse your company’s management accounts, forecasts, previous accounts and sustainable business activities. We can only be optimistic when we know that debt company?s financial accounts and reporting would be helpful in getting HMRC agreed on our detailed plan towards TTP.
Once we have fully assessed company? business finances and recent correspondence with HMRC and then we will devise a repayment proposal to be put forward to HMRC. Included within the proposal would be details of the circumstances surrounding your cash flow difficulties including facts from you that how and when HMRC payment was missed and reasons for this difficulty.
Our staff have years of experience working with HMRC and utilise the strong relationships built over time. An experienced consultant will negotiate a structured repayment plan on behalf of your business. It will demonstrates to HMRC that you fully intend on repaying your debt. The proposed repayment plan will outline the suggested repayment amounts and term requested.
If HMRC accepts the proposal, the Time to pay arrangement will commence. The Time to pay arrangement will conclude once all repayments have been made. Additionally, any interest and fee/charges will have been paid.
Time to Pay Arrangements can only be used to relieve HMRC specific debts. If you have debts to other parties, or you have had a TTP, which has failed, other debt-relief options may be more suitable for you. There can be repayment deadline to be met from HMRC, We want to ensure that the client is aware of alternative solutions.
if you are looking to pay off your debt while continuing to trade, there are alternative arrangements. You can apply for a Company Voluntary Arrangement (CVA), in which you stay in control of the company, continuing to trade while you repay your debts. Alternatively, if your business would benefit more from restructuring, company administration may be a suitable solution. We can discuss fact-finding and our reports with CVA advisor in advance.
sometimes, the company?s debt can be so substantial that it is not possible to continue trading, and you may be better off closing the company through a Creditor?s Voluntary Liquidation (CVL). Doing so would involve selling off company assets before creditors force it into compulsory liquidation.
What does TTP arrangement requires?
Introduction to case summary and detailed repayment proposal plan are normally submitted to HMRC debt management office with scope of following areas where necessary:
- Assessment of HMRC tax debt liability report
- Brief company structure, business opportunities, sustainability of business and our client?s willingness towards debt repayment
- Short term cash flow issue
- Reasons of cash flow issues
- Introduction of Director Loan as per shareholder and company official meet and approval
- Our internal report checks on the company (Western Thermal) about positive potential to operate
- Management accounts -Why management accounts are reflection of sustainable cash flow for the improvement of business activities
- Additional Loan options to pay off HMRC tax debt liability including working capital loan
- Initial offer of loan by company director, payable to before court hearing date or entry into official gazette. (If necessary)
- TTP repayment offer and calculation for ongoing repayments including fee and charges for last repayment
- Our recommendation summary including priority debt acknowledgment
- Cash flow forecast and repayment sustainability
- Alternative debt solution options for our client and reason why report towards TTP
There is a requirement to work / prepare on cash flow forecasts for next 12 months, management accounts, historical accounts copies, company background, business activities and business sustainability report.
For further information Please call our office on 0208 568 9687 for a free and confidential personal appointment.
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Please call us for free and confidential debt appointment on 0203 318 0990.
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