From 3rd August 2015, new customers in a time to pay arrangement (TTP) with HMRC will need to pay installments using Direct Debit only.
Having been HMRC’s preferred method of payment for a while, it will soon be the only method to pay for a number of reasons. HMRC has stated the move will be more cost and time effective, ensuring a smoother process of payment. It will prevent customers paying late or missing payments and will avoid any wrong allocations. Direct Debit also provides a guarantee to customers, which protects and monitors security of payments. If errors are made, the guarantee can ensure you receive a full and immediate refund.
Existing customers who do not pay with direct debit can continue to pay HMRC with their previously agreed method and do not need to switch. New customers will need to have their bank details available to HMRC when arranging the TTP. It is also likely that if a company has to start a new TTP if the old one failed then they will be forced to pay by direct debit.
If your clients are falling behind with VAT or PAYE, it’s worth considering an informal Time to Pay deal with HMRC. We can talk to HMRC on your behalf to set up an affordable and realistic payment plan.
More than 5,000 people have contacted KSA Group since Keith launched this unique website in 2000 and over 500 companies have now been directly assisted by the author over the last 15 years with assignments ranging from large multi national projects to small manufacturing companies, to simple advice over the phone.
For example, Keith ran a £500m sales company in an Administration plus CVA rescue in 2004 and that company (now much smaller) survives with sales over £100m or so. Keith has worked with much smaller concerns from £300k sales upwards and he is currently leading the turnaround of a £120m service company, (CVA).
Keith started his career as a retailer and experienced the savage recession of the 1990's first hand. This was before the banks had a planned approach to dealing with SME's failure. Close struggling businesses first; ask questions later was the response then. Of course this was driven by insolvency practitioners who wanted big fees.
So he learned a lot in a short time and thought "how can we help struggling businesses"?
He joined a specialist turnaround firm in London in 1994 and has helped set up two venture capital companies since, specialising in the distressed / turnaround sector. Since then he has focused on driving the delivery of free information to distressed business people and promoting the use of CVA's, innovative administrations and informal turnarounds.
Keith is a former director of the UK Turnaround Management Association and an associate of the Turnaround Finance Group.
There isn't much he hasn't seen, he is an entrepreneur and vastly experienced in turning around companies. Talk to Keith directly if you want.