At this time of year thoughts inevitably start to turn towards paying various company tax bills such as corporation tax, VAT. If you have experienced a year of bad trading conditions these bills can be quite daunting and at worst you may have insufficient funds in the business to pay them. This leaves you facing various options including a Time to Pay Arrangement.
A Time to Pay Arrangement isn’t suitable in every case where your business can’t pay its taxes. The HMRC may even refuse to grant you extra time to pay your taxes if it doesn’t trust that you will be able to meet your payment obligations.
If, however, the problem is temporary and not part of a long term decline in business fortunes, a Time to Pay Arrangement can offer a way out of potential business insolvency if enough money can be put aside within the agreed timeframes to settle tax liabilities.
As part of the arrangement HMRC will come up with a structured payment plan which will commit you to paying off tax bills within an agreed period of time.
For the best chance of success, you should appoint an insolvency practitioner to assist with the process.