Now much easier to agree

Agreeing a time to pay (TTP) arrangement used to involve calling HMRC and convincing the call handler that you were struggling to pay.

Agreement was often made grudgingly and callers were made to feel bad, sometimes during difficult personal circumstances.

Fortunately HMRC have softened their stance in recent years, and there may be no need to make a call at all.

What do you need to know?

What is a TTP?

A Time To Pay (TTP) arrangement is an informal agreement between the taxpayer and HMRC in situations where the self-assessment bill can’t be paid in full by the deadline.

Instead, the TTP arrangement allows the bill to be spread across monthly instalments by direct debit.

Previously, TTP arrangements could only be set up by calling the self-assessment helpline, explaining the circumstances, and making a case for it.

Taxpayers would often find HMRC reluctant to agree a payment period of more than a few months, however the recent Covid pandemic and the cost of living crisis has changed this.

What has changed?

It’s now possible to set up a TTP arrangement online with no need to make a call.

This will be possible if you:

  • have filed your tax return
  • are within 60 days of the payment deadline
  • owe less than £30,000; and
  • can pay in full within twelve months.

How do you set up a TTP?

Guidance on how to set this up is available online.  You will need to log in to your Government Gateway account to submit your request.

What does it cost?

Note that late payment interest will be charged, but no late payment penalties will be applied.

As interest rates are steadily increasing, paying sooner rather than later is recommended wherever possible.

If you are worried about your ability to pay a tax bill then speaking to the team at a4c may help.  Contact us on 01737 652 852.