Help with HMRC Pressure
Are you experiencing pressure with HMRC? We can provide guidance on this
My company can't afford to pay HMRC
HMRC are usually the most aggressive creditor when it comes to chasing arrears. It is key that you communicate with them when you are struggling to pay Tax or VAT.
If you are experiencing pressure from HMRC such as overdue VAT, PAYE or corporation tax, don’t panic! You have options but it is important you act fast and communicate with HMRC sooner rather than later, burying your head will only make the current situation worse.
HMRC are relentless when it comes to chasing payments and will not hesitate to add fines, interest, send bailiffs and in worst cases issue a Winding Up Petition (Compulsory Liquidation).
Frequently Asked Questions
What will HMRC do if I can't pay them?
If you don’t get in touch with HMRC or cannot agree an instalment plan, then HMRC will take action to recover the money from your business. It is important you don’t ignore HMRC and try to resolve the problem before it escalates.
HMRC have the ability to force your company into Compulsory Liquidation via a Winding Up Petition. You will receive warning letters regarding the outstanding debt, however these will quickly escalate to bailiffs and Compulsory Liquidation.
What is a Time To Pay Arrangement?
A Time To Pay Arrangement allows a company to make affordable monthly payments until the debt is fully paid. You can propose a Time To Pay Arrangement to HMRC if your business is facing pressure and needs more time to fulfil its financial obligations to HMRC.
Time To Pay Arrangements are typically 12 – 24 months however they can be longer in some circumstances. The company will need to demonstrate a strong cashflow and that it can meet future HMRC liabilities as and when they fall due. They do not reduce the amount of money you owe to HMRC; it simply spreads the repayment into affordable monthly instalments and interest could still be added.
Who qualifies for a Time To Pay Arrangement?
There are no straightforward rules to qualify for a Time To Pay Arrangement as HMRC consider each proposal on a case by case basis. They will look into the history of the company’s tax payments and returns to understand the strength of the proposal.
To arrange a Time To Pay arrangement the company will need to:
- Detail why the arrangement is needed and reasons for arrears
- Have a good history of paying HMRC
- Explain how it is affordable for the company through Cashflows
- Demonstrate future TAX liabilities will be met
- Show what return there will be if the company entered into insolvency
How do I apply for a Time To Pay Arrangement?
Time To Pay Arrangements are usually made over the phone with HMRC. During the phone call, you will be asked a few questions regarding your company. This includes the circumstances which have led to your company being unable to pay its outstanding bill, and to state what you can afford to pay on a monthly basis. You can call HMRC on 0300 200 3300.
You could also speak to us and we will go through the circumstances and guide you through how to make an arrangement as well as looking at all other viable options.
What if HMRC refuse my Time To Pay Arrangement?
If HMRC doubt you can fulfil the instalments of the Time To Pay Arrangement, they may refuse it. Alternatively, if your business doesn’t have a great record of paying HMRC, or paying on time, this may also be a factor for your application being refused.
If this is the case, you need to take advice as soon as possible to understand all other options available to you.
Frequently Asked Questions
Can HMRC chase a dissolved company?
Yes, HMRC can chase a company that has been dissolved. HMRC has the power to undo the dissolution by restoring a company to the national register. This forces the Director to deal with their outstanding debt to HMRC.
Am I personally liable for the company HMRC debt?
If the Director is found to have purposely failed the company’s National Insurance liabilities, HMRC can make the Director personally liable for the repayment through a Personal Liability Notice. If you’re not sure and need help, please get in touch with our team to discuss your specific circumstances.Get in touch
"HMRC are usually the most aggressive creditor, don't bury your head in the sand and seek help sooner rather than later..." Jonathan Cooper, Founder and DirectorGet in Touch