HMRC Debt Management Help
- Have a tax bill coming due for payment? Won’t be able to be pay on time? Great news; HMRC can help taxpayers in that position.
- HMRC can allow for future tax due to be paid in parts.
- A Time to Pay (TTP) plan is often used to refer to a HMRC instalment plan.
- HMRC’s Business Payment Support Service (BPSS) is for taxpayers to contact before tax is due.
- HMRC’s Self Assessment Payment Helpline is for individuals who have missed a tax deadline.
- HMRC’s Self Assessment Payment Helpline is for tax payments due under the self assessment tax system. The Self Assessment system is for people who must file an annual tax return with HMRC.
- HMRC Large Business Unit is for Time to Pay (TTP) plans for some taxpayers. Taxpayers who use the Large Business Service (LBS) should use the Large Business Unit (LBU).
- HMRC Large Debt Unit is for indirect tax debts of £150,000 or over. VAT is an indirect tax.
- HMRC are likely to know little about your situation. To explain the facts will help. Backup documents can help.
- HMRC staff are human. Being aggressive towards them or telling them what to do will not help.
- Any TTP plan needs to be robust, well thought out and genuine. If broken future plans may not be a choice
- Taxpayers can get help from regulated experts to help with making the best plan.
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What is HMRC Debt Management?
HMRC debt management is similar in nature to Business Debt Management but will only apply to money that is due to HMRC (Her Majesty’s Revenue and Customs), the UK’s government department responsible for assessing and collecting tax due to the UK government.
HMRC run support services to help taxpayers negotiate deferred instalments for paying tax that is due in the future. HMRC support services are not for use with tax debts that are past due for payment.
Queries to the HMRC on any past due debts should go the HMRC department that are chasing the debt for payment.
Time to Pay Arrangement
- The principle of a Time to Pay Arrangement is to allow a Company to repay the outstanding liabilities for VAT, PAYE and Corporation Tax in affordable instalments as opposed to in one go
- An arrangement will usually last a period of up to twelve months but can be longer if HMRC agrees
- The arrangement is beneficial to both parties if the alternative is for the Company to close; HMRC will receive payment in relation to the debts due and the Company will be granted time to help improve its financial position
- It is important that the payments you propose to make are realistic and the arrangement has a good chance of being successful
- Seeking a Time to Pay Arrangement will defer HMRC’s action in seeking enforcement against the Company
- Often having a financial plan in place will ensure the Company gets back on track
Who is Eligible for a Time to Pay Arrangement?
Any type of business can apply for a Time to Pay Arrangement but it is important to be able to demonstrate the viability of the business going forward and the likelihood of the Company returning to a state of financial security.
Can Repayment of the Debt Be Afforded?
A first question for the taxpayer is to work out a repayment schedule that they can afford. Failure to stick to a debt management plan with HMRC will often lead to the end of the agreement and refusal to accept a further repayment plan; HMRC may also start legal enforcement action to recover the amount due.
A strong proposal to support the desired repayment structure is an essential part of a negotiation for a Time To Pay (instalment payment basis) with HMRC.
Tailored Advice For HMRC Debt Management and Time to Pay Agreements
We are here to advise on the best approach to managing HMRC debt. Time is often a key factor in reaching agreement with HMRC before a tax debt becomes due and enforcement action for recovery starts.
We are more than happy to provide a quote to assist with negotiating with HMRC. It is not an expensive process but there is work that will need to be completed by us.
If there are debts due to others aside from HMRC or if instalments required by HMRC cannot be met by the taxpayer then alternatives options exist and we will be glad to discuss these with you.
Business Payment Support Service (BPSS)
The Business Payment Support Service (BPSS) is the UK tax office’s (HMRC) help line to negotiate mutually acceptable instalment terms for a tax debt from a business that is falling due for payment but that the tax payer will not be able to pay in full by the time the debt is due for payment.
The HMRC helpline number for the Business Payment Support Service (BPSS) is: 0300 200 3835.
Self Assessment Payment Helpline
The Self Assessment Payment Helpline is the UK tax office’s (HMRC) help line to try to negotiate mutually acceptable instalment terms for a tax debt from an individual under the self assessment tax regime that is falling due for payment but that the tax payer will not be able to pay in full by the time the debt is due for payment.
The HMRC helpline number for the Self Assessment Payment Helpline is: 0300 200 3822.
Can We Help You?
We will be delighted to discuss you position. Our initial advice to explain your options is free. If you choose to work with us, any costs will be agreed in advance. There’s no risk of any sudden bills.
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