Time To Pay Tax

If coronavirus means you can’t pay a tax bill on time, the government is offering Time To Pay (TTP) as a way of easing cash flow problems.

It is important to appreciate that TTP cannot be used to reduce tax liability. TTP is just that – it buys time, giving you breathing space and spreading payment over a longer period. Negotiating TTP means you can settle a tax liability by monthly instalments, making a tool to help your business weather the next critical few months.

TTP should be available across the whole range of taxes, from income tax self assessment bills, to VAT and corporation tax. There’s no standard arrangement: repayment is tailored to your circumstances. You may still have to pay interest, because technically the tax is overdue. The rate of interest is usually low, but is not allowable for tax.

Arranging TTP as soon as possible should mean you avoid having to pay penalties. To do this, contact HMRC now and explain that you have coronavirus-related financial difficulties. This is usually done by phone, but you can also use webchat. HMRC has set up a dedicated coronavirus helpline, on 0800 024 1222 https://bit.ly/3c91Ic8. Please note that nominated partners in a business partnership can negotiate TTP with HMRC on behalf of the partnership or individual partners. Fuller information is here https://bit.ly/3dadMKu.

If you wish to discuss any of this further please get in touch 0116 2423400 or info@torrwaterfield.co.uk

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