There has been a lot written in the press recently (both general and industry specific) about the declining number of HM Revenue and Customs time to pay agreements being given the go ahead, specifically where the proposals seek payment terms over 6 months. The general feedback is that HM Revenue and Customs will flatly refuse such requests and ask that the tax payer makes a full settlement.
Well for once I have to defend HM Revenue and Customs and say that in my dealings arranging a time to pay agreement for a client they were extremely helpful. They did what they said they were going to do, when they said they were and use common sense in their approach.
The outcome was a formal arrangement to clear all outstanding liabilities over an extended period of 24 months. For this my client and I are very grateful, thank you HMRC.
Obviously my client now needs to keep up the repayments and keep up to date will all current and future liabilities and we are going to be alongside to hand hold and ensure this is done.
From my experience these would be my top 3 tips for arranging an extended time to pay
- Know what you are talking about. When agreeing a time to pay scheme HM Revenue and Customs will ask many business and personal questions. Make sure you know the answers and confidently provide them.
- Make a good business case. In this case HM Revenue and Customs only option for collecting the tax was to agree a time to pay. The alternative would have seen my client forced into bankruptcy and would see then recover nothing. I made then aware of this and then reminded them at every opportunity.
- Be true to your word. If you say you are going to provide a piece of information of make a payment make sure you do it. It will build trust with HMRC with will help in the longer term. In this case a number of returns were outstanding and needed to be submitted before a time to pay could be agreed. I set the date with the advisor as to when these returns would be submitted and made sure that this was done and to show willing agreed a mini payment plan whilst the work was being completed.
Crump Pearce & Co are a proactive firm of accountants and professional advisors. We pride ourselves on providing our service in a relaxed yet professional way. To see how we can help you and your business please do get in touch.
Tim Pearce
Crump Pearce & Co Limited
43 Merstow Green
Evesham
Worcestershire
WR11 4BB
01386 49999
The above article is meant for guidance only and should not be relied upon in any way. Crump Pearce & Co accept no liability what so ever for any loss caused as a result of reading the article.
Tags: Accountants, Business, planning, Tax, Work
