How does coronavirus impact HMRC's Time To Pay scheme?
5
min read
How does coronavirus impact HMRC's Time To Pay scheme?
HMRC Time To Pay
What is it?
Small and medium-sized businesses who can’t afford to pay their tax bills can ask HMRC for a “time to pay” agreement to suspend debt collection. All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs. During the pandemic, the usual 3.5% annual interest on deferred payments will be scrapped.
Typically, successful applications will be granted 6-12 months extra to pay what is owed, however during the coronavirus crisis longer time periods could be offered. According to HMRC, there is no upper time limit with this scheme.
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What evidence will I need to supply?
In order to make your claim as strong as possible, you'll need to put forward a reasonable repayment proposal with supporting evidence.
Strong claims typically include:
- Forecasting sales
- Evidence of efforts to cut costs
- Proof that you are determined to settle your outstanding taxes
Although strong claims typically include this information, each application will be assessed on a case-by-case basis due to the significant disruption that coronavirus has caused.
What will help my application?
HMRC will consider a number of factors when deciding whether to grant you a Time To Pay agreement. These include:
- Whether you've complied with tax rules and regulations in the past
- Your business industry
- Whether you've had (and kept to) previous Time To Pay arrangements
- If your business has been affected by coronavirus (this will be assessed on a case-by-case basis)
How do I apply?
To start a Time To Pay case review, call HMRC on 0300 200 3835.

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