HMRC publish guidance on time to pay arrangements

Tax

HMRC have issued details of how to make a time to pay arrangement for those unable to meet their tax demands. The earlier you contact HMRC the better, 90% of time to pay arrangements complete successfully.

 

Time to pay arrangements are based on an individual’s specific financial circumstances, so there is no ‘standard’ time to pay arrangement. HMRC look at what you can afford to pay and then use that to work out how much time you need to pay. A time to pay arrangement can cover all outstanding amounts overdue including penalties and interest.

 

It is designed to be flexible and is not a fixed, formal contract. It can be amended over time, enabling it to be shortened if your earnings rise or if you receive a windfall, for example, an inheritance. Importantly it can also be lengthened should essential expenses increase, or income decrease.

 

For more information and HMRC contact details go to https://www.gov.uk/guidance/find-out-how-to-pay-a-debt-to-hmrc-with-a-time-to-pay-arrangement