Time to Pay Arrangements relieves stress of debts

Time to pay arrangements

Did you know that HMRC can offer you Time To Pay Arrangements to help you pay any tax that you owe?

Firstly, payment arrangements with HMRC is not a new concept, however it is one that many people are still unaware of! As a result, taxpayers cause themselves unnecessary stress when HMRC Time to Pay Arrangements could help.

So what is the limit?

The maximum amount of tax owed under HMRC Time To Pay Arrangements increased from £10,000 to £30,000 back in October 2020. In addition, December 2021 included the introduction of PAYE into the arrangement scheme.

The criteria for using HMRC Time to Pay Arrangements is:

Self AssessmentEmployer’s PAYE
Maximum tax owed£30,000£15,000
Deadline for using the online serviceWithin 60 days of the payment deadlineWithin 35 days of the payment deadline
Deadline to avoid late payment penaltiesWithin 30 days of the payment deadlineN/A
Timescale for paying off the debtWithin the next 12 monthsWithin the next 6 months
Tax return filingLatest SA return must be filedEmployer PAYE and construction industry scheme returns must have been filed
Other liabilitiesMust have no other payment plans or debts with HMRCMust have no other payment plans or debts with HMRC

If you are unable to meet the criteria above, you will need to contact HMRC to discuss an alternative. HMRC will charge interest on payments made after the above deadlines.

In conclusion, the key here is to start the conversation with HMRC. As daunting as that may be, it is better to address the issue of not being able to pay and come up with a solution together, rather than receive their multiple debt chasing letters.

HMRC will also refer the debt to debt collector agencies in the hope of recovery, don’t allow yourself to fall into this category.

For further advice or guidance please get in touch!

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