Posted by on 16 February 2011 | 1 Comments

The process is reasonably straightforward for tax liabilities of less than £100,000. In these cases terms are usually agreed by HMRC fairly quickly over the telephone. For liabilities in excess of £100,000 decisions are generally referred to the business’s Local Tax Office for clearance. The HMRC Business Payment Support Service Line number is 0845 302 1435.

In respect of VAT we have been successfully negotiating ‘time to pay’ arrangements on behalf of clients at 0% interest without surcharge or penalty. Typically, other taxes are being deferred without surcharge or penalty, however, interest is being incurred, at the current official rate of 2.5%.  

If you’re business is having genuine difficulties and is operating on finance then it may make commercial sense for the business to arrange a ‘time to pay’ agreement with HMRC in preference to using money that incurs higher interest costs elsewhere.

Care is needed, however, as arrangements must only be made where a genuine need can be demonstrated. We would recommend you discuss your intentions with us before HMRC are contacted.  

Call us to find out more.