Time to Pay Arrangement

HMRC Re-Payment Plan – Our Guide.

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When you first start dealing with HMRC about a re-payment plan, one of two things will be happening.

You will have a new liability and will find yourself talking directly with the relevant head of tax department i.e. VAT/Corporation Tax (CT)/Pay As You Earn (PAYE) etc.

You may have an older debt that is being chased and you may be talking to the likes of Debt Management and Banking Units (DMB collection departments) Field Force, Debt Enforcement/Debt Resolution or even Enforcement and Insolvency. HMRC may also use an external collection agency at some stage too.

Our guide will help explain how to give your re-payment plan its best chance of success. We will also explain how best to use HMRCs own procedures to your advantage.

Any debt owed to HMRC will go through a collection process and dependant on where you are up to within that, the time you are given for re-payment could dramatically differ.

Firstly HMRC will always push on a 12 month re-payment plan or less. Certain departments named above are only able to accept 12 month plans as it is a set criteria i.e. Field Force. But other departments can try and give you longer, it’s all about what you say, how you present it and how strong your case is. This also includes the strength of your reassurances to HMRC that you are not a risk going forward and your liabilities won’t keep increasing.

Every time to pay arrangement comes with the warning that the very next due liability must be paid on time & in full – You must also ensure all your returns are up to date before you tackle a payment plan with HMRC, they won’t consider anything until they are.

The reason HMRC push for such short time frames are basically down to you, as a risk to treasury, so in all dealings with HMRC it’s about lowering yourself or your business as a risk to them by various reassurances’. They also try to get overdue debts paid before the next liability lands, which means they can push for an overdue VAT quarter to be settled before the next quarter is due! Obviously this is not always possible and longer re payment terms are generally needed & can be discussed.

Initially work out what you can afford to pay HMRC on a monthly basis and regardless of whether you have even spoken to them yet or not MAKE THOSE PAYMENTS EACH MONTH – this will give you a huge boost when talking to HMRC, plus you are already reducing the debt and showing willing to clear it.

Our advice is to always send your re-payment proposal in writing to HMRC in every instance and back this with either your incomings/outgoings or cash flow/forecast – this is a paper trail no matter what and the more you explain to HMRC day one, the better. Plus, should the debt end up going through several departments, you’ll always have the ability to send this in writing and again follow up with phone calls.

Now, take the leap and talk to them, be prepared for them to fight back on shorter re-payment terms, stick to what you need initially/be stubborn and start by explaining the difficulties you’ve faced, what you have done to stop this happening again i.e. cost cutting measures/new accountant/invoice factoring etc. From there advise them of what you can afford each month to re-pay.

Be prepared to go over your personal incomings and outgoings if you are an individual or if you are a company, be prepared to either go over your cash flow or have to send it to HMRC – If you have wrote in, as per our advice, they’ll have this already.

Now if this is a new/recent debt with HMRC you may get a reasonable result day one but if you need over 12 months to re-pay the debt, be prepared to play out a waiting game with HMRC. If it’s an older debt, you may find issues with the re-payment plan, depending on the term you’re asking for and which department is holding it.

Whether it’s a new or old liability, HMRC may turn down your repayment offer. DO NOT STOP PAYING WHAT YOU CAN AFFORD EACH MONTH, this is key to making this work, no matter which department you are at.

Now if this is a new debt, what will then happen is HMRC will start to take your debt through the collection process. This means a new department will get in touch and start to collect the debt. Initially this is normally just a Debt Management and Banking Unit, it will be called DMB 440 as an example – there are several.

Remember, at this stage you are making regular payments and reducing the debt. HMRCs process of passing the debt through different departments can take months sometimes, so inevitably your debt will keep reducing and you will then get to a department who may even only allow 12 months but as the debt is lower you may be able to clear this lower balance over the 12 months at that stage. The goal here is, during the time it takes HMRC to move your debt on from department to department, you are constantly making a regular monthly payment and reducing the debt.

As each new department comes along, re-send your written proposal and again follow this up by calling HMRC and discussing your issues/how you can settle the debt. You may find at any given department an acceptable re-payment plan can be reached, one you can afford each month and one HMRC will accept. They would then look to set payments up via Direct Debit to ensure stability of the re-payment plan.

As mentioned above, at some stage HMRC may use an external debt collection agency such as LCS, Advantis or Bluestone, list is not exhaustive – they will firstly write to you. Now be mindful of dealing with them, not always will they have all your HMRC debt with them and many clients fall foul of making an arrangement with this agency, thinking it’s all sorted, only to find HMRC then chase them for the rest of the debt they still hold – this can cause massive financial difficulties. This is especially true if you owe across different taxes, it is best to simply ask the debt collection company to transfer the debt back to HMRC, you want to be dealing with HMRC alone really. In addition, please note this external agency can do nothing more than chase you for the debt, they can’t remove goods, don’t show up at your house and have no powers to issue any form of court proceedings – they are just a pain basically.

Once a debt has gone through, perhaps 3 or 4 DMB units and an external agency, you start to head towards a department called Field Force.

What is Field Force?

Field Force are agents who do home visits, their goal is to figure out how a debt can be re-paid and if need be assess whether the individual or business has goods/assets that could be sold on to recoup money towards HMRCs outstanding debts.

Now don’t panic, as long as you are talking to the field force agent (who will normally give you their mobile number) about a monthly re-payment plan, the agent will do their upmost to help. Do not let them threaten you with the fact they can wind your business up or make you bankrupt – Field Force is NOT the department at HMRC who can do this at all.

Please note: Field Force can only accept plans over 12 months; it’s not the agent being difficult, it’s simply a set criteria for that unit and they have no leeway over this. Again, if you need over 12 months, still at this stage, to clear your debt you’ll need Field Force to pass the debt on – REMEMBER KEEP MAKING THOSE PAYMENTS REGARDLESS. Again, this about letting a debt move through HMRCs process, offering a re-payment plan each step of the way but also making those payments and reducing the debt further each time.

Ultimately a time or department will come, that accepts a re-payment plan you can afford, to settle any remaining balance, at that stage. After Field Force generally comes a department called Debt Enforcement.

What is Debt Enforcement?

If a debt transfers here you need to be mindful of the fact that you are getting closer to potential winding up/bankruptcy action being taken by HMRC. This is the last department in the line before a debt passes to Enforcement and Insolvency. No matter what HMRC say, throughout your dealings with them, Enforcement and Insolvency are the ONLY unit that can issue winding up proceedings or bankruptcy/county court action.

Debt Enforcement will again always try and help and come to some form of re-payment plan/time to pay arrangement. However, this is a tough department and they generally stick to a 12 month plan also. You can request longer but it brings us back round to an earlier point – It’s about how long you’re asking for, what you present and how you support it and reassure HMRC.

It will be a push with Debt Enforcement to get even 16/18 months, so be prepared for this and ensure you have everything you need to give your case its best chance of success. If you are finding it difficult to reach an re-payment plan with this team and the time you need to re-pay a liability is simply not agreed or not achievable through your own affordability, you still have time to consider other options and plan B’s, whilst you are with this team.

It may very well be worth seeking further advice at this stage and considering all options to deal with your HMRC debt, be them insolvency options or even seeking funding/lending.

Should a debt pass to Enforcement and Insolvency life can become more difficult.

What is Enforcement and Insolvency?

This team are extremely strict, their attitude is, that they are not there to collect a debt, simply to enforce it. They may give you time to repay a liability still but at best you are probably looking at 2-4 months.

If you are at these stages, don’t let anyone or any company out there fool you that they can get you extended times, no matter who deals with HMRC, there’s a limit of several weeks allowed to repay debts over.

Try to have other options in play also, at this stage. If Enforcement and Insolvency (EIS) issue a winding up petition, the companies life or an individual’s if bankruptcy proceedings are issued can become increasingly difficult, including the freezing of company accounts.

Seek advice each step of the way with HMRC, experienced agents, like us, can help guide you and if needed, can do all the above for you.

Have a look at some our other posts which will help you understand how a Time to Pay Arrangement works and also how Re-paying tax bills in instalments is possible.

You can of course call 0800 448 0293 for a chat if you feel we could be of any assistance to you.

Do you have Tax Debt Problems?

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Do you have Tax Debt Problems?

Tax debt problems are a daunting issue for thousands. As HMRC escalate collection action for outstanding revenue debts, pressure is being applied to many small businesses. This causes untold worries, sleepless nights and takes you away from focusing on your business.

According to Government statistics, there are 5,200,000 small to medium enterprises operating in the UK, employing some 25,200,000 people. All of us, including larger companies, can find ourselves in a position where we are unable to pay tax on time, leaving us with tax debt problems. Many of us have sleepless nights worrying about bankruptcy or legal action, even losing our homes and business owing to being in debt, especially to HMRC.

As of March 2017 there was £13 billion outstanding to HMRC – So we are not alone!

Don’t find yourself in checkmate – the worst thing to do is ignore this matter. Tax debt problems can quickly escalate, especially if HMRC apply penalties and charges and pursue winding up or even bankruptcy action against you or your business. Your situation may not be as bad as you think but as always, time is of the essence – Seek advice from your accountant / business advisor or a 3rd party as soon as possible. If you don’t act, you increase the risk of legal action being taken against you and your business.

More than likely you will be aware that you have tax debt problems and owe HMRC either from your accountant or you may have received an arrears letter from HM Revenue and Customs showing what you owe and to what form of tax.

Many such letters are now being sent out to people just like me and you. You may not have had any earlier contact off HMRC either so a letter through the post can be a nasty surprise. Don’t ignore letters like this, HMRC will continue to pursue the debt even if you don’t hear off them for a month or so – Legal action starts quickly and escalates just as fast.

Tax debt problems can be dealt with and HMRC can offer the opportunity to individuals and businesses to pay by monthly instalments – A Time to Pay Arrangement. Should you need further advice on any tax debt problems or wish to chat more about a Time to Pay Arrangement, we are here to help you.

Quite often a quick response can help solve the situation all round and take this weight off your shoulders.

Have a look at our other blogs for further advice and helpful tips. Top Ten Tips handling HMRC.

Remember you are not on your own and there are people who can help.

Here at Tax Debts Help and Advice www.taxdebtshelpandadvice.com  we specialise in helping those that have tax debt problems and owe to HMRC. We are set up to negotiate the ‘mine field’ that is HM Revenue and Customs specifically for our clients.

If you are facing any tax debt problems then call our friendly team for a chat on 0800 448 0293. Alternatively you can visit our website and start a live chat or email enquiries@taxdebtshelpandadvice.com

Repaying tax bills in instalments to HMRC

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The old adage that “prevention is better than cure” has never been truer than in the context of HMRC and tax debts; however what happens when you can’t pay a tax bill in full and on time? Repaying tax bills can be extremely stressful, but it does not have to be.

For many taxpayers and businesses, a dramatic change in circumstances can cause financial difficulties. Problems can occur because of challenges faced by the business, for instance, a drop off in trade combined with a lack of working capital, all of which can cause cash-flow issues which need to be overcome in order for trade to continue.

Since the onset of the recession and more recently BREXIT, we’ve all had to look at our cash flows and balances a lot closer and unfortunately in a lot of instances; money set aside for HMRC and repaying tax bills has had to be used to keep individuals and businesses trading.

This leaves HMRC chasing for late overdue tax bills.

Many of us will have sleepless nights worrying about repaying tax bills in general, leading to concerns over bankruptcy or legal action and even losing our homes and businesses owing to being in debt, especially HMRC.

“Don’t bury your head in the sand”

Escalating debts can have a paralysing effect on some individuals and businesses.

Many clients come to us after “burying their head in the sand” and collection actions has been taken against them. It may be tempting to ignore the issues and hope that it goes away! Of course, life isn’t that simple. Arrears to HMRC can quickly escalate as charges and penalties will be applied, leaving what could have been a manageable tax bill increasing into a much larger one that in turn leads to difficulties in repaying tax bills across multiple heads of tax – making life even more difficult.

If you leave it, a small amount originally owed, once ignored, can become unmanageable.

A Time to Pay Arrangement could help you and your business get back on track.

A Time to Pay Arrangement is a monthly re-payment arrangement with HMRC. Given as a concession, it is there to help individuals and businesses in repaying tax bills at an agreed monthly figure over a set period of time.

In many cases the monthly amount is based on the amount owed to HMRC, re-payment time frames and HMRC’s own criteria – Many individuals and businesses then struggle to meet the level HMRC are requesting – This is where we can help.

If you need to look at alternative ways in repaying tax bills, other than trying to get a loan / funding, a Time to Pay Arrangement could help you schedule more affordable monthly payments over a period of time. This can in turn, help with overall cash flow issues, clear HMRC arrears and afford the business the opportunity to move forward.

Here at Tax Debts Help and Advice (www.taxdebtshelpandadvice.com) we specialise in helping those that owe to HMRC and can’t pay the debt back in full and on time.

We’re set up to negotiate the ‘minefield’ that is HM Revenue and Customs specifically for our clients.

As a team, we specialise solely in tax re-payment plans, tailored to our clients’ requirements, for a variety of self-employed individuals and businesses the length and breadth of the UK. Our flexible approach helps assess personal and / or business tax liabilities in a compliant way, keeping our finger on the pulse of an ever-changing industry, where staying on top of legislation and HMRC’s activity is paramount.

Repaying tax bills doesn’t have to be an uphill struggle, ending with HMRC closing your business or making you personally bankrupt – Help is out there but don’t wait.

How does it work?

We will assess all our clients’ needs and requirements via an initial fact find. All solutions are personally tailored to individuals or businesses and depending on what suit your requirements; we can access our panel of specialists, across various financial fields, which can assist you and your business further.

when it comes to repaying tax bills, we have the solutions.

Why choose us?

We have over 2 decades experience within this industry and we have developed our paperwork and processes in line with HMRC’s own requirements and guidance. Our expertise is borne out of experience and knowledge.

We have built up extended relationships throughout HMRC and partner ourselves with a panel, derived from various Accountants, Tax Advisers, Legal Firms and Professionals to provide informed expert guidance, meaning you and your business are in safe hands when it comes to repaying tax bills or general business problems or queries.

We tailor everything we do to each individual case as opposed to “one size fits all” solution. Our friendly team are here to help, we don’t judge, we simply fight your corner in every instance.

Call us on 0800 448 0293 or head over to our website www.taxdebtshelpandadvice.com to start a live chat. Alternatively, you can email us at enquiries@taxdebtshelpandadvice.com

 

What are Time to Pay Arrangements?

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Tax debts can be the most worrying type of debt owed, given the action that HMRC can take against individuals and companies when they have arrears.

The old adage that ‘prevention is better than cure’ has never been truer than in the context of HMRC and tax debts; however what happens when you can’t pay a tax bill in full and on time?

For many taxpayers and businesses, a dramatic change in circumstances can cause financial difficulties. Problems can occur because of challenges faced by the business, for instance a drop off in trade combined with a lack of working capital, all of which can cause tax debts across different heads of tax and cash flow issues which all need to be overcome in order for trade to continue.

Since the onset of the recession and more recently BREXIT, we have all had to look at our cash flows and balances a lot more closely and unfortunately in a lot of instances; money set aside for HMRC and tax liabilities has to be used to keep individuals and businesses trading. This leaves HMRC chasing for late and overdue tax debts.

Many of us will have sleepless nights worrying about bankruptcy or legal action, even losing our homes and business owing to being in debt, especially to HMRC.

“Don’t bury your head in the sand when dealing with tax debts”

Escalating tax debts can have a paralysing effect on some individuals and businesses. It may be tempting to ignore the issue and hope it just goes away. Of course, life isn’t that simple. Arrears to HMRC can quickly escalate as charges and penalties will be applied.

You are not on your own – Many clients come to us not knowing how to deal with their debts, collection action has been taken against them for tax debts and arrears in other areas also. It is never too late for us to help.

tax debts

So what is a Time to Pay Arrangement?

A Time to Pay Arrangement is a monthly re-payment plan with HMRC for any tax debts that you owe. Given as a concession, it is there to help individuals and businesses repay late or overdue taxes back at an agreed monthly figure over a defined period of time.

In many cases the monthly amount asked for by HMRC themselves, is based purely on the amount owed to HMRC, re-payment time frames they calculate and their own criteria. Many individuals and businesses faced with escalating tax debts, with penalties and charges applied, struggle to meet the payment HMRC are requesting each month. This is where we can assist.

Here at Tax Debts Help and Advice (www.taxdebtshelpandadvice.com) we specialise in helping those that owe tax debts to HMRC and can’t pay these back in full and on time. We are set up to negotiate the ‘mine field’ that is HMRC specifically for our clients.

As a team, we have for over two decades, specialised solely in tax re-payment plans, tailored to our clients requirements. We work for a variety of self-employed individuals and businesses the length and breadth of the UK and have got their tax debts into manageable, affordable monthly arrangements.

Our flexible approach help asses personal and / or business tax liabilities in a compliant way, keeping our finger on the pulse of an ever changing industry, where staying on top of legislation and HMRC’s activity is paramount.

How does it work?

We will assess all out client’s needs and requirements via an initial fact find. All solutions are personally tailored for the individual or business and are aimed at solving the tax debts issue or overall business difficulties our clients are facing.

Depending on what suits your requirements; we can access our association of specialists, across various financial fields, which can assist you and your business further.

Why choose us?

We understand people and the unforeseen circumstances they find themselves in. We are very approachable and non judgemental, we have heard probably every scenario possible when dealing with tax debts. We are in your corner but more importantly, we are here for you so don’t feel you are alone, you are not.

We have over two decades experience within this industry and we have developed paperwork, documentation and processes in line with HMRC’s own requirements and guidance.

We have built up extended relationships throughout HMRC and partner ourselves with extremely knowledgeable experts in their own fields, derived from various Accountants, Tax Advisers, Legal Firms and Professionals to provide informed expert guidance, meaning you and your business are in the best of hands.

For a friendly chat, call 0800 448 0293, start a live chat on our website or use the following link https://www.taxdebtshelpandadvice.com/contactus.html to our contact page.

Problems paying a tax bill to HMRC?

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Tax Debt Questions? We are here to offer free advice and help in any way we can.

I don’t think a day goes by without us receiving calls from clients who have a variety of tax debt questions relating to tax arrears, due dates for HMRC payments and general enquiries and issues around tax and dealing with HMRC.

Feeling like you can freely ask us questions is important to us as a company; we are here to answer your tax debt questions and much more. Feel free to pop on our website for a live chat or use the contact details provided in this article for a friendly chat anytime.

It’s good to remember sometimes that you are not alone and that all of us, including larger companies can find themselves in a position where they are unable to pay tax on time. This leaves them with unanswered tax debt questions, worries who to speak to and more importantly, how to get those important questions answered and solve the problem they may be facing.

According to Government statistics, there are 5,200,000 small to medium enterprises operating in the UK, employing some 25,200,000 people. As of March 2015 there was 13 billion outstanding to HMRC – So we are not alone. This total doesn’t include what HMRC refer to as aged debt which is £4 billion too!

Many of us have sleepless nights worrying about bankruptcy or legal action, even losing our homes and business owing to being in debt, especially with HMRC.

The most common tax debt questions we get asked are:

• Can you help with a tax debt I have? We have every possible type of tax being asked about.

• My company is struggling to pay a Corporation / VAT / PAYE (etc) tax bill; can anything be done to stop HMRC taking this further?

• HMRC have sent someone to my door for an unpaid tax bill, can you help?

• I’ve had a letter off HMRC; I didn’t even know I owed them a tax debt, what can be done?

• I’m Self-Employed and can’t pay my tax bill, can anything be done? I have spoken to HMRC and they didn’t even want to help!

The answer to all of the above is simply YES, we can help and we are happy to chat over everything with you.

We will help guide you through this process and explain where HMRC may be up to and how long we feel you may have before things escalate. We will answer all of your tax debt questions and ensure you understand fully HMRC’s tax collection procedures. More importantly, we will help you assess a suitable option, keeping everything concise and clear for you.

The worst thing to do is ignore this matter. Your situation may not be as bad as you think but as always, time is of the essence – Seek advice from your accountant / business advisor or a 3rd party as soon as possible. If you don’t act, you increase the risk of legal action being taken against you and your business.

More than likely you will be aware that you owe to HMRC either from your accountant or you may have received a letter from HM Revenue and Customs, stating what you owe and to what form of tax.

Many such letters are now being sent out to people just like me and you. You may not have had any earlier contact off HMRC either so a letter through the post can be a nasty surprise. If this leaves you with unanswered tax debt questions or any queries in general, we are here to help.

However, don’t ignore letters like this, HMRC will continue to pursue the debt even if you don’t hear off them again – Legal recovery action starts quickly and escalates just as fast. Quite often a quick response can help solve the situation all round.

Check out our other Blog for dealing with HMRC:

https://www.taxdebtshelpandadvice.com/top-10-tips-handling-hmrc/

“Remember there are people who can help”

Here at Tax Debts Help and Advice www.taxdebtshelpandadvice.com we specialise in helping those who have HMRC tax problems and can’t pay the debts back in full and on time. We are set up to negotiate the ‘mine field’ that is HM Revenue and Customs specifically for our clients.

So for any tax debt questions, we are here to offer friendly advice and help in any way we can. Call 0800 448 0293 to speak with a member of our team, visit our website and start a live chat or click on the link to our contact page https://www.taxdebtshelpandadvice.com/contact.us.html

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