A Time to Pay (TTP) arrangement is a payment plan with HMRC to spread tax payments into affordable instalments, typically over 12 months. If you are in financial difficulty and cannot raise funds to settle HMRC tax liabilities, a TTP can combine all business taxes into one affordable instalment, such as Corporation Tax, VAT or PAYE.
This can relieve creditor pressure, ease cash flow worries, and provide the business with additional time to restore financial health. If you struggle to maintain tax payments to HMRC, you could be penalised for late payments and fined. If you are in a critical financial position and fail to seek a Time to Pay arrangement or pursue a formal insolvency procedure to rescue your business, creditors may force your business into liquidation to recover overdue payments.
To successfully negotiate a Time to Pay arrangement with HMRC, the TTP proposal must be realistic, sustainable, and affordable. If you wish to apply for a Time to Pay arrangement due to cash flow worries, read our Time to Pay scheme notice – https://www.begbies-traynorgroup.com/articles