Paying tax can result in financial difficulties, particularly where cash flow can be a problem. HMRC therefore offer ‘Time To Pay (TTP)’ arrangements, where the liabilities are paid in agreed instalments over a set period. It is important to note that interest does still accrue on the late payments (but, importantly, penalties will be waived).
However, a recent case has highlighted that the only way to successfully obtain this arrangement is via the prescribed route.
In the case of D Wragg v HMRC (2024), it was concluded that simply speaking to HMRC (including HMRC’s Debt Management department) to inform them of the inability to pay the tax by the deadline would not stop penalties being charged. Also, HMRC did not accept that the taxpayer had a reasonable excuse, and so was left with hefty penalties for the late payment.
So if you are looking to set up a payment plan with HMRC, you must ensure you apply here: https://www.gov.uk/difficulties-paying-hmrc/pay-in-instalments. Unfortunately as your agent, we are unable to make the arrangements on your behalf.
