Making tax payments can be difficult to keep track of.
All those who have made a self assessment for their tax contributions will be fully aware of how difficult and complicated it can be to budget for once or twice yearly tax payments.
Since January 2009, HMRC have had a fully operational central database which can identify slow or missed payments much faster than its previous system.
A payment plan may benefit you or your business if:
From April 2011, HMRC introduced a managed payment plan to support people who are struggling with making repayments in one or two annual lump sums.
This new, optional, tax payment plan method offers a means of paying tax liabilities on time, within a budget and avoids getting into arrears. This allows people and businesses to spread their income tax or corporation tax payments over equal monthly installments and to a manageable level within the payment plan. You must remember to keep up the monthly payments.
You may be eligible to a managed payment plan if you are:
A Time to Pay Programme may be the tax payment plan that your business has been looking for.
Time to Pay Programmes have been organised by the government to assist businesses in the deferral of PAYE, VAT, National Insurance and Corporation tax.
If your company is ‘genuinely unable to pay’ its tax contribution requirements, and tax owed is on previous year’s profits or a trading loss in the current year is highly probable, there’s a chance that a Time to Pay Programme may be accessible.