HMRC takes hard line on Time To Pay

Posted by PM | on Fri, 04/02/2011 - 15:57 5234 3 comments

Businesses looking to defer paying their tax bills are feeling the squeeze with many finding it increasingly difficult to secure Time To Pay arrangements under the Business Payment Support Scheme (BPSS).

AccountingWEB.co.uk members and business groups are sensing a shift towards a harder line approach, in spite of HMRC denying a change in policy.

According to the latest HMRC figures, the percentage of all VAT, PAYE and Corporation Tax deferral applications turned down has doubled in the last year - up from 2.7% to 5.8% - rising from 6,760 to 8,550 cases.

While 138,700 new arrangements worth £2.34bn were granted in 2010, HMRC claims there has been a 60% decline in demand for the scheme in December compared with its March 2009 peak.

However, the Federation of Small Businesses (FSB) has singled out TTP as one of the most effective and popular government schemes since its launch in November 2008. Since that time the initiative has allowed 395,400 bills to be deferred, worth £6.83bn.

Continued...

Time to Pay

kpmillward | Mon, 07/02/2011 - 10:53 | Permalink

I am surprised Jamie Crampton's clients, who knew well in advance that they needed time to pay, where granted time to pay - our experience has shown that if you know well in advance and try to contact the Revenue to agree a time to pay arrangement you are simply refused because it is too early.

I agree though; it does simply depend on who you speak to - it is a bit of a time to pay lottery!

Time to Pay

DavidMaidstone | Mon, 07/02/2011 - 12:08 | Permalink

Certainly the whole principle of Time to Pay is that you should find yourself unable to pay at the moment, so I have found that late application works better. Also you need to be making a reasonable proposal and I suspect that some of the refusals would be refused by most of us reading this article.

Time to Pay Deals

ksagroup | Tue, 08/02/2011 - 12:43 | Permalink

The HMRC is taking a tougher line on Time to Pay Deals. It is paramount that the request is made in writing ( many don't do this ). We have a simple time to pay programme that can help. For accountants and Bookkeepers we will be launching this as a free service soon. To register please send me an email.