Time to pay arrangements

TTP Arrangements do not have a standard. They are all influenced by the financial situation of the person or company applying for them. They are intended to be adaptable over time in order to ensure that HMRC receives the funds it is owed.

It is critical to understand that this option is available before payment is due. If you anticipate that your company will have difficulty paying HMRC debts in the near future, you must act as soon as possible. If you are unsure where you stand with your HMRC debts, please contact us for more information.

What Are the Advantages of a TTP Agreement?

If you're a director who's having trouble dealing with creditors, TTP Arrangements can be a good way to keep the wolves at bay. If your company is struggling, time is money. TTP Arrangements can give you time to think about your best options while keeping you from having to deal with persistent creditors right away.

You can assess the state of your business and choose the best path forward in consultation with a professional advisor. For example, if your company is no longer viable, it may be time to consider Voluntary Liquidation, in which case a TTP may free up some cash to cover the liquidation costs.

How to Make an Application for a TTP Arrangement

To apply for a TTP Arrangement, you must submit a written case along with supporting cash flow reports. This is in addition to contacting HMRC's Business Payment Support Helpline.

During the call, they will inquire about the state of your business, how you came to be unable to pay, and how you intend to address the situation in order to pay HMRC.

The process is intended to determine how much you can afford to pay or whether you can pay off your debt at all. As a result, it is critical not to overestimate your ability to repay. HMRC will not approve your TTP Arrangement if they believe you will not make the repayments.

TTP Arrangement Negotiation

The most important factor to consider when negotiating your TTP Arrangement is that your case is an accurate reflection of your company. During the call, the interviewer will evaluate several aspects of your company, including:

Only if HMRC is confident that you will repay your debt will you be granted a TTP Arrangement. The best course of action is to set realistic and achievable goals.

If HMRC discovers that you lied on your TTP application, they have the authority to terminate the agreement immediately. Similarly, if you fail to make the agreed-upon payments, the agreement can be terminated or renegotiated if the failure is due to a change in circumstances unrelated to the long-term health of the business.

Directors must also be aware that these agreements have no effect on the amount owed to HMRC. Instead, they extend the amount of time you have to repay what you owe.

What Should I Do If My TTP Application Is Rejected?

If your TTP application is denied, the next steps will be determined by the viability of your company. If your business is still viable, you should contact a turnaround consultant who will contact HMRC on your behalf. An approach from a company that specialises in business recovery may strengthen your case.

Another option is to enter into a Company Voluntary Arrangement (CVA) to restructure and resolve debt issues.

As a director, you still have a variety of options. You should seek advice from Focus Insolvency on the best course of action.

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