Companies may often find themselves on shaky ground when it comes to cash flows. And among the first casualties of payment or remittance defaults are Corporation taxes, PAYE and VAT. While defaulting on payments is more out of compulsion than choice, it is important to work out a Payment plan HMRC for staggered payments. Here is how you can find your way back to normalcy if your cash flows do not permit you to make your remittances in time.
The HMRC has a separate division – BPSS (Business Payment Support Services) – to assist businesses in making payments. You need to get in touch with the BPSS in case you realise that you are unable to make the payments on time. It is a good idea to get in touch as soon as you understand your inability. You can negotiate late payments with the HMRC on behalf of your business if you are a nominated partner in the business. Get in touch here
In the event that you have missed the date on which the payment should have been made you need to quickly contact the Self Assessment Payment Helpline to pass intimation. This helpline can also be contacted if you have not received your bill, or if you are in receipt of a notice about non-payment. You can get in touch with the call centre on the numbers displayed here
The HMRC has a Time To Pay option to help companies ease the burden of payments. This option is extended to companies that are assessed as having had a positive history of tax payments. You need to prove your intent to repay and not avoid the liabilities. Under this arrangement HMRC may waive the penalties, while keeping the interest options open to companies that approach the HMRC well in time. This needs to be supported with records and a feasible plan for payment of liabilities over a period of twelve months or more.
You need to prove that you are no approaching insolvency and that this is a temporary phase.
You need to furnish forecasts of sales figures for the period immediately following the request.
You will be expected to furnish a feasible plan for the repayment period.
As per a rigid interpretation, you may not be extended the opportunity of TTP if you have a bad history of tax remittances. However, it is possible to negotiate and seek one, provided the plan is presented right and you are able to convince the HMRC.
The HMRC may cancel the TTP if you default on the agreed payment, if you have furnished false information, if circumstances change and show your company to be on the road to insolvency.
If you have a problem in making remittances on time, you need to quickly move to avoid penalties and surcharges. By availing the services of an expert, you can present your case better to the HMRC and in the shortest possible time to avail the benefits of payments by installments.