Personal Tax

Time to pay arrangements for tax due under self assessment

Produced by Tolley
  • 09 Dec 2021 15:01

The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Time to pay arrangements for tax due under self assessment
  • Conditions for time to pay and steps to take before approaching HMRC
  • Negotiating time to pay arrangements
  • Time to pay confirmation letter and direct debit
  • Rejection of time to pay
  • Problems meeting the agreed time to pay
  • Provisional time to pay arrangements
  • Payment difficulties due to the coronavirus (COVID-19) pandemic
  • Is the time to pay arrangement binding on HMRC?
  • Interaction of time to pay and universal credit

Time to pay arrangements for tax due under self assessment

A time to pay arrangement, which may also be referred to as TTP in practice, is a negotiated agreement between HMRC and the taxpayer to allow for tax to be paid after its due date.

The guidance in this note applies to individuals under self assessment and companies paying corporation tax. It does not apply to VAT liabilities or where there is a statutory right to pay by instalments (eg for large companies).

For further details on paying VAT or corporation tax by instalments, see the following guidance notes:

  1. Paying VAT

  2. How to pay corporation tax

If a taxpayer becomes aware that they will not be able to pay their tax liability by the due date, then they, or their appointed agent, may be able to negotiate a time to pay arrangement with HMRC. Anecdotal experience from practitioners indicates that the ease with which a time to pay arrangement is agreed can vary, with some arrangements being agreed with little or no questioning, and some taking significantly more negotiation. The amount of tax at stake and the taxpayer’s previous payment history can influence this. A taxpayer with a history of delinquency is less likely to be able to secure an agreement.

HMRC guidance on time to pay arrangements can be found in its manuals from DMBM800000 onwards.

Conditions for time to pay and steps to take before approaching HMRC

Time to pay is arranged at the discretion of HMRC and it looks to the ‘viability’ of

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