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15 April 2020If your business is struggling with Corporation Tax, VAT and/or PAYE payments then you could be granted additional time by the government to pay what you owe.
15 April 2020Small 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.
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:
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.
HMRC will consider a number of factors when deciding whether to grant you a Time To Pay agreement. These include:
To start a Time To Pay case review, call HMRC on 0300 200 3835.
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Dan is part of the content team at iwoca. He writes articles explaining financial topics, as well as guides on the best support for small businesses during coronavirus.
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