Time to Pay Arrangements (TTP) are meant to assist viable businesses experiencing temporary financial difficulties by arranging repayment arrangements for debts owed to HMRC. You must continue to make the payments agreed upon under the agreement; otherwise, the TTP will collapse and you may be forced to consider other insolvency options.
What is a Time to Pay Arrangement?
A Time to Pay agreement (TTP) is an informal repayment agreement that allows your Company to spread the payment of outstanding taxes over a longer period of time, often twelve to twenty four months, if you can demonstrate that you can afford it.
TTPs can be used to pay back VAT, PAYE, and corporation tax arrears. They can also be used to foresee issues with impending payments by limited companies, sole traders, partnerships, Limited Liability Partnerships (LLPs), and any other type of organisation.
Can a Time to Pay Arrangement Be Changed Once it is Arranged?
If you are already in a TTP agreement and are having difficulty making your payments, McLaren Insolvency Practitioners can contact HMRC and perhaps request an extension.
We will create a proposal that focus on:
- Your revenue and cash flow projections for the selected timeframe.
- Demonstrating how your organisation will make TTP payments.
- Demonstrating your willingness to make the payments.
- Your track record with HMRC.
When can HMRC Refuse a Time to Pay Arrangement?
If HMRC questions the proposal or your company’s capacity to pay, your application will be denied.
Time-to-Pay Arrangements are frequently rejected because:
- HMRC has cause to question your capacity to repay the amount within the time-frame indicated.
- Your past records with HMRC are not in good standing. This might include a history of late tax return submissions, inability to react to communications, failing to adhere to previous agreements, or failure to bring HMRC up to date on your financial condition.
- Instead of simply experiencing short-term issues, the company does not appear to be viable or profitable.
- Other Ways McLaren Insolvency Practitioners Can Help Liquidation of Companies (CVL) Creditors’ Voluntary Liquidation (CVL) is a statutory procedure to Wind Up Companies in accordance with insolvency laws, ensuring all matters are professionally administered until the Company is Dissolved. registered. Failure to cease trading an insolvent Company can expose corporate directors to claims of malfeasance. A licenced insolvency practitioner (IP) is appointed to oversee the proceedings and realise the company’s assets, including any remaining leases. The realisations are held for the benefit of the creditors. CVL reduces the risk of improper trading claims while also allowing employees and directors to access statutory redundancy pay. Liquidation of Solvent Companies (MVL) Another type of liquidation, known as Members’ Voluntary Liquidation (MVL), may be appropriate for closing solvent Companies if the Directors and shareholders wishes to transition into a different business or is nearing retirement. MVL may be a viable alternative if the company has cash of £25,000 or greater to distribute, as funds taken are liable to Capital Gains Tax (CGT). Seeking professional advice to begin the process of liquidating your franchised company If your company is dealing with debt, call us immediately for experienced advice and personalised solutions to overcome financial obstacles. Our team of licenced insolvency practitioners is available to assist you with your company’s financial difficulties. Contact us to gain from our extensive expertise in dealing with corporate debt difficulties. We recognise that each company’s financial challenges are unique, therefore we provide bespoke solutions suited to your exact requirements. With our assistance, you may develop a clear financial recovery and stability plan.
