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Published: 19th February 2020
Time to Pay arrangements (TTPs) enable businesses to pay off arrears of tax and National Insurance over an extended period of time, limiting HMRC penalties and allowing for recovery of commercial momentum.
TTP instalment plans are typically offered to businesses experiencing temporary financial difficulty rather than those with long-term issues, and a key part of the process is establishing a repayment amount that’s affordable to the business for the whole term.
Given our erratic economy and uncertain business environment, it’s not unusual for businesses that have entered into a HMRC Time to Pay arrangement to default, and breach the agreed terms.
This can result in serious difficulties for the business, particularly as HMRC are known to take enforcement action quickly to recover their money. If you know you are likely to fall behind in your TTP arrangement, you must inform HMRC as soon as possible, preferably before the breach takes place, so they can review the situation.
So what might happen when a TTP is breached, and is it possible to limit the damage to your company?
If you breach your Time to Pay arrangement, you have a limited time in which to act. If you cannot afford to repay the debt, your company may be able to secure alternative finance that would improve liquidity.
Alternatively, entering into a Company Voluntary Arrangement (CVA) may be an option if the company is deemed viable in the long-term. Company administration could also allow for the restructure of debt, or the sale of underlying business assets.
Begbies Traynor provides independent professional advice, and can guide you on your best options when a Time to Pay arrangement has been breached. We offer free same-day consultations to quickly assess your situation through our extensive network of offices around the UK.
Call our Confidential Advice Line. Calls to this number are free of charge.
Call us now...We invite you to come and discuss your enquiry with us at your convenience.
Request a meeting...Call our Confidential Advice Line. Calls to this number are free of charge.
Call us now...We invite you to come and discuss your enquiry with us at your convenience.
Request a meeting...Call our Confidential Advice Line. Calls to this number are free of charge.
Call us now...We invite you to come and discuss your enquiry with us at your convenience.
Request a meeting...