Time to pay (TTP)

By Tolley in association with Jackie Barker of Wells Associates

The following Owner-Managed Businesses guidance note by Tolley in association with Jackie Barker of Wells Associates provides comprehensive and up to date tax information covering:

  • Time to pay (TTP)
  • Initial action
  • Contacting HMRC
  • After contacting HMRC

This note offers guidance in respect of HMRC’s TTP arrangements. It is based on information on HMRC’s website as it applies to companies.

See GOV.UK  for HMRC’s guidance.

TTP arrangements have been designed to help companies, who anticipate that they may have difficulty in paying their tax liability on time, to make realistic payments over a regular and agreed period. Each arrangement is tailored to the ability of the company to pay and would typically be for a few months only. TTP arrangements lasting over a year are only agreed in exceptional circumstances.

For more information, see DMBM800020–DMBM804210.

Initial action

HMRC will want to know whether any additional action to raise finance in order to pay the tax liability has been taken, before the company approaches it. Suggested action includes:

  • seeking to arrange a short term loan from a bank or building society
  • request early settlement from debtors or chasing outstanding monies owed
  • seeking to reduce any non-essential expenditure

If after considering these options it is still proving difficult to pay, the company or their agent should contact HMRC to discuss getting time to pay.

Contacting HMRC

To discuss TTP, the company or their agent will need to call HMRC’s Business Payment Support Service on 0300 200 3835 (8am to 8pm Monday to Friday and 8am to 4pm at weekends, excluding bank holidays). This service is available to businesses who have not yet received a demand for payment.

HMRC will ask for the following information:

More on Corporation tax administration: