HMRC – New Time To Pay Process
HMRC has recently published new information about its debt collection procedures. The new process called Time to Pay (TTP) is an arrangement between HMRC – Debt Management & Banking (DBM) and a taxpayer.
The taxpayer agrees to make fixed repayments of the debt over an agreed period of time. TTP should be sought before the debt becomes due. If a TTP arrangement is agreed before the due date, any potential late payment penalties will be waived. HMRC will still discuss a possible arrangement after a due date.
DBM works directly with you to assess your circumstances and decide the best course of action. The size of the debt and the proposed length of the TTP will dictate the level of information HMRC will need to make a considered assessment of your financial position.
TTP will not stop interest accruing and any late penalties/surcharges that have already been applied to a debt will normally stand. However, once a TTP arrangement is in place, it will prevent any further penalties from being added, providing the agreed arrangement is adhered to.
Or find more information at http://www.hmrc.gov.uk/manuals/dmbmanual/dmbm800040.htm