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Worried About Tax Return? HMRCs TTP Arrangement Can Help

Abul Nurujjaman, 



Besides the strategy projected in the "quack quack" billboards by HMRC to persuade people into filing for self-assessment tax return before the Midnight of January 31, HMRC has always been very helpful in other ways for the taxpayers.

 

Let s suppose you are looking for some sort of relaxation in paying your tax dues, well, All you need is a TTP (Time To Pay) Arrangement.

 

What is TTP Arrangement?

 

A TTP arrangement is an easy and convenient way to pay your debt back to HMRC in monthly installments, usually within a year. However, terms and conditions may differ depending on your business nature, affordability and situations. There could be agreements for a longer period of time as well. If you are under circumstances due to which you are facing trouble paying your tax bills on time or you think you could in trouble later in fulfilling your tax requirements, the best policy is to contact HMRC as soon as possible, or you could get in touch with Taj Accountants to discuss the possibilities in detail.

 

Your Reputation Matters

 

Another important aspect in this regard is that your TTP Arrangement is very much dependant on your earlier track record which means that you paid your taxes on time in the past years, you followed the rules and regulations and made sure you maintain a good compliance history with HMRC. No matter how much we insist on paying tax bills on time, we could all have times where we need more time to pay them. In such times, the safest option for business owners is to acquire a TTP installment plan. This procedure comprises the following steps:

 

Negotiate with HMRC

 

Get in touch with them through ways mentioned on their website.

 

You may need to submit your tax documentation and other details in writing.

 

You ll also need to provide an explanation why you are unable to pay tax on time and asking for further time.

 

State the amount without any ambiguity that your company can afford to pay in installments.

 

HMRC will only agree to any Time to Pay arrangement when they ensure that you will be able to keep up with the payments; on the other hand, if you choose to state a falsely large amount, it can arise suspicion and HMRC could reject your proposal. HMRC will also take into account other factors while making the decision such as:

 

The long-term viability of your corporation

 

The possibility of a Time to Pay plan being completed.

 

Relevant alternatives if you fail to keep up with the plan.

 

Stay Aware!

 

At this point, the interviewer will further inform you of the implications and consequences which could occur if you fail to keep up with the TTP Arrangement or deliberately falsify any sort of information. You will be briefed on the penalties, interests, and fines that you d have to pay otherwise.

 

Stay Realistic!

 

Entering into a TTP arrangement will not reduce your tax dues, you ll have to submit all the amount owed. The TTP Arrangement only provides the ease of paying the tax bills in installments.

 

Be Careful!

 

Although a TTP Arrangement saves you from overwhelming penalties, as HMRC is bound by the law to adhere to the arrangements, it can also break the agreement under some specific and extraordinary circumstances.

 

If HMRC finds out about any changes in your company s financial situation or falsification of information which could make you non-eligible for the TTP plan, it can withdraw the agreement without any formal notice. It is imperative to bring into the knowledge of HMRC, any kind of changes in the situation of your company or else you could face difficulties.


Disclaimer: The information provided in this blog is brought to you by Taj Accountants. As you are reading this blog of your own free will, any information taken from this blog is at your risk. Before using the information provided to apply, to your business seek professional or legal advice.Taj accountants will not be liable for any damages.

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