At Brian G. Lonis & Co we work to help people make the right arrangements. This could be for starting a business, reorganising, or even pensions. We are also one of the top resources for VAT returns Harringay has. If you are having issues paying tax we can help. One thing you may be able to do is agree a Time to Pay (TTP) schedule with HMRC.
What is Time to Pay?
TTP is an option HMRC offers if taxpayers are unable to pay their tax before the due date. If this is the case, the tax authority can agree to a payment schedule that will allow payment over a course of months rather than one lump sum. This is an option that has been available for a long time as a last resort, but it is more common now due to coronavirus.
All kinds of taxpayers can use Time to Pay if they need to. This includes companies, sole traders, and individual people.
The thing to keep in mind with TTP is that HMRC is quite flexible in what they can set up for taxpayers. This is because every case is unique and the situation will be different. One taxpayer may only need 1-3 months to pay off what they owe. However, when the tax bill is larger and it is tougher to pay on time, it may become necessary to arrange a 12 month plan or more.
Pros
There are many good reasons to use Time to Pay. Firstly, it gives taxpayers the chance to spread out payments for their tax bill, making it easier than paying a lump sum. This can free up cash flow so the taxpayer has the funds to cover other bills.
Secondly, it provides certainty on the amount they need to pay each month. The agreement is binding on HMRC so they cannot demand more unless your situation changes. However, the taxpayer must stick to the payment schedule or can encounter big issues.
Thirdly, as long as the TTP schedule is agreed before a payment deadline, there will be no penalty for missing it.
Cons
On the other hand, there are some downsides to TTP. Firstly, you will likely need to give HMRC a lot of information about your finances. This is even more likely if you need to agree a payment schedule for longer than 12 months. It is important to keep in mind that HMRC will have all of this info to help with enforcement in the future if you get into issues again.
A second big issue is HMRC can cancel the agreement and take legal action if the taxpayer fails to keep up with the payments. Here they will likely look to recover all outstanding debt as well as the legal costs.
VAT returns in Harringay
Brian G. Lonis & Co has a lot of experience with tax. As a result we can help taxpayers with all of their needs, including returns and planning. Our services are affordable and ensure you have the right support.
If you need help with VAT returns Harringay has nobody better than us. Get in touch today to find out more.