Business owners looking for a VAT payment plan helpline have a couple of options available to them: either they ring and try to arrange one themselves, or they enlist the help of a specialist.
While going down the DIY route may be tempting, we’ve seen countless cases of badly negotiated payment plans putting otherwise solid businesses at risk of closure. HMRC isn’t always the easiest organisation to deal with, and many directors don’t manage to secure a plan that can truly help them out.
Can you do a payment plan for VAT?
Yes, HMRC can provide payment plans for VAT bills. These are called Time to Pay arrangements (or TTPs). It’s not something that HMRC typically shouts about though. That’s not to say that they hide this option, but it’s rare that it’s offered without asking for one first.
From their point of view, if a business has run up a VAT bill that they’re struggling to pay, allowing them breathing room to carry on trading only increases the chance of them accruing a larger bill that may not get paid.
Of course, HMRC would also rather be paid than not at all should the company fold. This is the balancing act that HMRC advisors work with when negotiating any TTPs.
Will HMRC allow a payment plan for other tax bills?
Yes, HMRC can arrange Time to Pay agreements for most tax bills, including Corporation Tax, PAYE, National Insurance, and self-assessment tax bills.
What happens if I can’t afford to pay VAT?
HMRC are within their rights to use debt collection agencies to claim money or assets to the value of the amount owing.
Should they be unable to secure payment, they will start a winding-up petition. This sees a legal action filed against the company which forces them into liquidation. The funds raised from the sale of all of the company’s assets are then distributed among its creditors.
A winding-up petition can be applied for any debts over £750.
How to set up a Time to Pay arrangement
The main thing to remember is to act quickly. As soon as you realise that you can’t pay the tax bill, you should get in touch with either HMRC or a third-party negotiator such as ourselves.
The easiest way to set up a Time to Pay arrangement is undoubtedly the latter option. A specialist will ask you a few questions and then settle everything else on your behalf. It’s quick, easy, and returns the best results by some distance.
Can I pay my VAT over 3 months?
There are no set timeframes for HMRC to use when issuing their VAT payment plans. A three-month plan is perfectly achievable and is actually on the shorter end of all the arrangements made.
Chief HMRC Negotiation Specialist at Forbes Burton, Nicholas Troth, explains that “three months might be enough for some companies, but most need a much longer period to ensure that their business remains on a steady footing.
“Despite what some other negotiation firms claim, HMRC’s Time to Pay arrangements don’t top out at 12 months. We’ve been able to routinely secure payment plans of longer than this, with many surpassing 24 months. Each case is obviously different, but there doesn’t seem to be a cap on how long HMRC will allow.”
Can HMRC reject my payment plan?
HMRC can, and often will, reject payment plans proposed by business owners. Troth warns that “directors can absolutely secure a TTP by themselves, but the repayments are often over short periods if a plan is offered at all.
“Having an expert negotiate on your behalf is strongly recommended, especially if unmanageable repayments could put your business in jeopardy. Take time to research any company you use and ask about the likelihood of being able to secure a favourable plan. A good negotiator won’t promise an exact number of months but may be able to give you an idea of what you can expect.
“A skilled and experienced negotiator with a strong working relationship with HMRC is almost certainly going to arrange a far better payment plan than most business owners”.
What is a reasonable excuse for HMRC?
You may be entitled to a short reprieve if you’ve missed your VAT deadline because of an exceptional event.
These include:
- Serious illness/hospital stays
- Death of a partner or immediate relative just before the deadline
- Fire, flood, theft
- A technical issue at HMRC that prevented payment
Ignorance of the law or general business at work getting in the way are unfortunately not valid excuses.
Does an HMRC payment plan affect your credit score?
A Time to Pay arrangement shouldn’t affect your credit score if payments are kept to. Should you default on your payments, however, then HMRC can take action against you and this can have a negative impact on your credit file.
What is the VAT payment plan helpline number?
HMRC don’t have a specialist helpline for TTPs, but do have a number to use for missed VAT payments: 0300 200 3831. Before you ring that though, it’s strongly advised that you speak to a HMRC negotiation specialist first. You can reach us on 0800 060 8446.
The best VAT payment plan helpline is our own
We regularly keep UK businesses afloat by securing manageable payment plans with HMRC for them.
Check out our five-star Trustpilot reviews page to get a sense of what we do here at Forbes Burton. Our thousands of grateful clients realise that when we promise practical and honest advice that delivers results, we mean it.
Why not give one of our Time to Pay experts a call for a free initial consultation? There’s no obligation, and no heavy sales spiel, just helpful and honest advice.
Contact us on 0800 060 8446 or find out if you qualify for a Time to Pay arrangement with our quick online test →
Chris Leadley
chris.leadley@forbesburton.com
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