Don’t invest unless you’re prepared to lose all the money you invest. NextFin promotes high - risk investments and you are unlikely to be protected if something goes wrong.
Take 2 minutes to learn more.
Brought into sharper focus since the outbreak of coronavirus, a Time To Pay arrangement is a way of spreading your business tax payments over a longer period of time to sallow for a more affordable way of making payments. Usually an agreement is reached between the business in question and HMRC to provide breathing space to the business and allow cash flow to improve.
Updated as part of the Chancellor’s raft of coronavirus support schemes, a Time To Pay (TTP) arrangement is designed to help businesses that are deemed as viable, but experiencing temporary cash flow issues. The key here is that a TTP is applicable to businesses that are known to be profitable.
Allowing you to spread your tax payments over a longer period of time, TTP is used for arrears of corporation tax, VAT and PAYE, but can also be used if you are expecting problems with upcoming payments.
Once you agree to a TTP, you will find that interest will most probably be charged on the amount that is due to be paid. However, any penalties can be lifted if you make contact with HMRC quickly to find a solution.
You will need to contact HMRC, or seek the assistance of a professional Insolvency Practitioner who will negotiate on your behalf.
But what constitutes a ‘strong’ case? According to HMRC, this is essentially the ability to present a realistic proposal of what you can afford to pay, backed up by evidence in the form of:
Sales and cash flow forecasts for the following six months or more
A plan of how you will cut costs to free up extra cash
Generally conveying your determination to ensure repayments are met.
It is worth remembering that HMRC will want the TTP arrangement to be over in the shortest time, with the highest repayments possible, in order to recoup their money quickly.
Author: Sacha Bright & Oliver Murphy
Disclaimer
To the best of our knowledge, the information we have provided is correct at the time of publishing. Sacha Bright is not a solicitor or accountant and we recommend that you seek professional advice on any topic discussed. Nextfin is not liable for any damages arising from the use of or inability to use this site or any material contained in it, or from any action taken as a result of using the site.
Tagged: sme entrepreneur tax alternative finance coronavirus
Alternative Finance: The Four Types Of Crowdfunding
What is Business Interruption Insurance?
The pros and cons to alternative investment in to private companies via debt or equity
Need Recognition? Here Is A List of Competitions And Awards
What Is The Term Funding Scheme, And Why Is It So Important To Extend It To P2P Lenders?
Alternative Finance: The Four Types Of Crowdfunding
The pros and cons to alternative investment in to private companies via debt or equity
What is Business Interruption Insurance?
Should I Invest in P2P?
Self-Employed to Benefit From Second Stage of Support Scheme
How To Start A Business Post-Covid-19
Business Banking Resolution Service To Open In November
Over 1.2m Businesses Have Benefited From Coronavirus Lending Schemes
What is The Start Up Loan Scheme?
Figures Show 730,000 Job Losses Since Start of Lockdown
As seen in: