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Know you can’t pay your tax bill?

Thought about asking HMRC for more time to pay?

In the current difficult times of Coronavirus when you may not be able to trade as normal, cashflow can become a problem so think about asking HMRC for more time to pay.

HMRC have already deferred the second installment of tax on account due on 1st July:-

You have the option to defer your second payment on account if you’re:

  • registered in the UK for Self Assessment and
  • finding it difficult to make your second payment on account by 31 July 2020 due to the impact of coronavirus

You can still make the payment by 31 July 2020 as normal if you’re able to do so.

Most I suspect will choose to defer their payments to protect their cashflow.

HMRC will not charge interest or penalties on any amount of the deferred payment on account, provided it’s paid on or before 31 January 2021.

There are a number of government initiatives available which you can read about here.

Please also read our dedicated COVID-19 summary here.

If you can’t raise the money to pay the whole of your tax bill by the due date, you can ask HMRC for a (TTP) arrangement by calling:0300 200 3835. Interest will be charged for late payment, but you should avoid penalties if the TTP is agreed before the penalties become due.

Any type of tax can be subject to a TTP arrangement; not just business taxes. However, you will need to confirm to HMRC that you can’t borrow the money in time, and you must agree to pay the tax by instalments collected by direct debit. HMRC are unlikely to agree a TTP arrangement if you have made a similar request in earlier years, or if your tax returns are outstanding. We can help you negotiate a TTP agreement.

https://www.gov.uk/difficulties-paying-hmrc

Avatar for Karen Jones
About Karen Jones

Having worked for one of the world’s largest accountancy firms, Karen Jones uses her tax knowledge and skills to help clients obtain substantial reductions to their tax liabilities.

With an expanding portfolio of tax clients, Karen enjoys the variety her work brings her and particularly likes working with new businesses and people. With a growing number of tax clients, she frequently faces a variety of challenges and relishes the experience she gains as she solves them.

Karen likes the THP ethos: “I like the way the team has a professional, but friendly and down-to-earth approach – it creates a productive atmosphere that benefits everyone.”

Karen’s specialist skills:

  • Personal Taxation
  • Tax Efficient Planning
  • Trust Administration
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