HMRC Time to Pay: Who Qualifies and What You Get
Learn how to set up a structured payment plan if your business is struggling to pay tax bills on time.
This scheme allows businesses that are having difficulty paying their tax bills to set up a structured plan to spread the cost over time.
Who it's for
This arrangement is specifically designed for businesses that are currently struggling to pay their tax bills on time. If your business is facing financial pressure that makes it impossible to settle your tax obligations by the original due date, this scheme provides a way to address those debts without immediate, full settlement.
What you get
The primary benefit is access to a structured payment plan. Rather than being required to pay your entire tax bill in one single lump sum, you can work out a way to spread the total cost over a period of time. This can help your business maintain better cash flow and manage day-to-day operational costs while slowly paying off what is owed to the tax authority.
What it costs you
To utilize this scheme, you must take action before your original payment deadline has passed. You cannot wait until you are already in default to seek an arrangement; you must proactively contact the authorities to set up the plan before the due date arrives.
The catch to know
It is important to understand that while this helps you manage your immediate cash flow, it is not a way to avoid the cost of the debt. You will still be charged interest on any late payments throughout the duration of your arrangement.
How to apply
- Identify that your business is unable to meet its upcoming tax deadline.
- Contact the tax authority to discuss your specific financial situation and difficulties.
- Propose a structured repayment plan that matches your business's ability to pay.
- Ensure the plan is officially agreed upon and set up before the original payment deadline.
For more information and to start the process, visit the official portal: https://www.gov.uk/difficulties-paying-hmrc