A4.610 Time to pay arrangements

Administration and compliance

A4.610 Time to pay arrangements

A4.610 Time to pay arrangements

Where the taxpayer is unable to pay the tax debt due, it may be possible to negotiate a time to pay arrangement with HMRC. HMRC's guidance on time to pay arrangements can be found in its manuals from DMBM800000 onwards.

These arrangements typically allow the taxpayer to spread the tax debt due over six to 12 months while maintaining ongoing payments in respect of new tax liabilities1. Exceptionally, periods in excess of 12 months may be considered.

Before a time to pay arrangement can be negotiated, the taxpayer must have2:


    •     submitted all outstanding tax returns


    •     approached their bank/building society to obtain support for cash-flow difficulties


    •     reduced or stop any non-essential expenditure


    •     approached debtors to collect payment


    •     liquidated stock


    •     looked to other sources of debt such as personal loans or credit cards


    •     approached other creditors for extended terms

HMRC may also request sight of a cashflow forecast

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