Time To Pay (TTP) scheme - Moorfields explain how it will work for you
Getting your taxes in order is a very important part of learning to function as an SME, but sometimes the process can seem complicated. If your business is potentially struggling in the current economic climate then tax affairs can seem even more daunting.
The introduction of a Time To Pay (TTP) scheme is designed make the tax collection process more cost-effective overall, as well as being more suitable for all parties. But how does the scheme work? What exactly does it mean for your business?
Tailored arrangements that work for you
One of the central benefits of TTP is that you can arrange for a tax collection system that is tailored to your needs though collaboration with the HMRC. If the HMRC is satisfied that the customer cannot pay their liability but will eventually have the means to pay, TTP can be agreed between both parties. This does not mean that the amount of tax due will be reduced, but that a suitable and realistic repayment period can be agreed upon.
The scheme is ideal for a struggling business that is keen to keep up to date with their tax responsibilities but is currently going through a difficult period with their finances. It is important for such a business to approach the HRMC with transparency and ensure that they have all the necessary documentation regarding their situation.
If it does emerge that your company has been untruthful about any aspects of your financial situation during the process, the HMRC will be entitled to withdraw from the scheme. It pays to be clear and concise about all aspects throughout the whole process.
The tax collection process can seem daunting in the current climate regardless of whether you are a large or small company. Dealing with VAT and PAYE arrears or unpaid tax fall under the umbrella of the tax collection process.
If a business feels that they need more support and guidance they can contact a corporate recovery service who could provide assistance in dealing with HMRC payment demands.