Time to Pay?
Published on 5 July, 2011 - 10:59
Businesses should be warned HMRC may not be as eager to agree to a TTP as they may once have been, which may be due to the rumour they are currently owed an estimated £1 billion.
In a recent document published by HMRC Business Payment Support Service, figures show the percentage of TTP requests which were refused, in the quarter from January to March 2011, were nearly 10% which compares to 2.6% last year. Whilst the percentage of TTP arrangements granted in the first quarter of this year fell significantly by nearly half, to 33%, HMRC insist this is not due to a tightening of their criteria
The downturn in arrangements may reflect a decline in demand with many businesses closing down during this economic downturn and just be general economic indicator.
“Time To Pay (TTP) arrangements allow HMRC to collect tax in a cost effective way. They allow viable customers who cannot pay on the due date to make payment(s) over a period that they can afford. Arrangements are tailored to the ability of the customer to pay and are typically for a few months although they can be longer”