HMRC is willing to assist companies that are genuinely struggling to pay their tax liabilities due to cash-flow difficulties.
HMRC will allow the company extra time to pay, subject to the following:
- The company must be completely open with HMRC about its financial position, and HMRC will want all outstanding returns submitted prior to agreeing any deferral arrangement.
- TTP arrangements are only offered to companies that are temporarily unable to pay their tax liabilities as a result of a short-term detriment to their cash flow, such as a bad debt.
- If the director has an overdrawn loan account, HMRC usually require this to be repaid in whole or in part before they will consider approving a deferral arrangement/TTP.
HMRC will usually consider deferral arrangements up to a maximum of one year; however, it will require all future returns and payments to be made on time, and the TTP agreement needs to be strictly adhered to.
Any missed payments normally result in HMRC cancelling the TTP arrangement and commencing winding-up proceedings against the company.
Our expert insolvency practitioners work closely with HMRC, and we are able to put together a proposal, on the company’s behalf, with with a view to obtaining the agreement of HMRC to a deferral arrangement.
Dean Nelson, Nicholas Lee, Andrew Stevens and Michael Roome are all licensed in the United Kingdom to act as insolvency practitioners by the Institute of Chartered Accountants in England and Wales. They are bound by the insolvency code of ethics, which can be found here.
When acting as receivers, administrative receivers or administrators, they act as agents only, without personal liability, and when acting as administrators, the affairs, business and property of the company are being managed by them.