Time to Pay Arrangement ("TTP")

If your business has arrears of taxes with HMRC it is important you deal with the situation promptly. HMRC has additional recovery powers to other creditors and if you ignore the situation, business and personal assets could be seized. If you receive a threatening letter or a visit from HMRC act immediately.

In certain circumstances, HMRC will agree to give you time to pay outstanding arrears, known as a TTP. HMRC review all applications for TTPs on a case by case basis but there are a few things to bear in mind:

You must keep up to date with all ongoing taxes, otherwise HMRC will terminate the TTP.

If you have had a TTP before which has defaulted, HMRC are unlikely to grant another.

Any offer needs to be realistic. There is no point in offering something which is unviable in the long term.

Historically HMRC required repayment over no more than 12 months. However, since Covid, they have been accepting much longer TTP periods.

If you miss payments, HMRC will terminate the agreement and expect the full amount of tax to be paid.

The TTP will need to provide for payment in full.

A TTP can be agreed without professional help. However, a free initial consultation with Brailey Hicks often helps to consider all the options before embarking on a TTP. It is important that any TTP with HMRC is realistic and does not default. It is often beneficial to discuss your circumstances and forecasts before submitting an offer.

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