HMRC Time To Pay Arrangements To Help Taxpayers With Coronavirus
A very welcome concession ...
POSTED BY HELEN BEAUMONT ON 25/03/2020 @ 8:00AM
Time To Pay (TTP) arrangements extend payment deadlines for taxpayers in financial distress. HMRC has set up a dedicated helpline to support businesses and the self-employed whose finances are affected by Coronavirus ...
If you need Time To Pay due to the Coronavirus having an impact on your business, HMRC can help!
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TTP arrangements can be applied for by any taxpayer unable to meet a tax payment deadline. HMRC will review each application and, if satisfied as to the taxpayer's circumstances, will agree to terms for an extended deadline, normally collecting regular instalments of tax over the extension period.
"The extension is usually less than one year, and penalties are generally waived if the TTP deadlines are met; interest will probably apply!"
HMRC has set up a dedicated helpline which can be used by any business owner or self-employed individual who has been affected financially by Coronavirus. This aims to support taxpayers through their temporary financial challenges, and TTP arrangements will be offered if appropriate.
The Government has also confirmed that, if a business has administrative difficulties in contacting HMRC or paying tax, late payment penalties and interest will be waived!
I welcome this announcement, as part of a programme of measures to mitigate the economic impact of COVID-19. Many businesses do not have significant cash reserves, and can easily get into difficulties if cashflow is reduced. TTP arrangements can help otherwise viable businesses to survive relatively short term issues, ultimately assisting the economy.
I'd encourage any business or self-employed individual who believes that they may have difficulty paying their next tax bill to contact HMRC as far in advance of the deadline as possible, with estimates of how much time they will need to raise the funds, and what instalments they can realistically pay.
Previously, Time To Pay arrangements have been used to support businesses affected by flooding and the 2008 financial crisis, as well as those with individual issues, so the mechanism is well established.
When will it apply? Immediately!
Until next time ...
Would you like to know more?
If you'd like to know more about Time To Pay, do call me on 01908 774323, leave a comment below or click here to ping over an email and let's see how I can help you.
About Helen Beaumont ...
Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.
Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.
When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.
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