Time to pay arrangements (TTP) are now much easier to agree!
Agreeing a time to pay (TTP) arrangement used to involve calling HMRC and convincing them that you were struggling to pay. The agreement was often made grudgingly. This stance has softened in recent years, and there may be no need to make a call at all.
So, what do you need to know?
TTP arrangements are informal agreements 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. The advent of the pandemic and the cost of living crisis has changed this.
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.
Guidance on how to set this up is available online. Note that late payment interest will be charged, but no late payment penalties. As interest rates are steadily increasing, paying sooner rather than later is recommended wherever possible.
You will need to have your tax return done before applying for TTP arrangements. We are currently running a promotion until 1st December 2022.
£225 + VAT for a basic Self-Assessment Tax Return (usually £299 + VAT)
Offer is valid until 01.12.2022.
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The Team at London Accountants