HMRC Time To Pay Arrangements

by | Dec 20, 2019 | Alternatives to formal insolvency, CVLs | 0 comments

Here’s a list of the questions you will be posed by HMRC when asking them to put in place a time to pay arrangement (‘TTP’).

This is my list, based on my experience, there may be other questions based on your circumstances, but this list gives you something to work with, something you can use as a basis.

 

Typical Questions

 

A     Financial and general circumstances of the Company, the Group and Directors

In summary HMRC are looking to understand the overall financial position of the company that owes the money and all associated with it, including other group / associated companies and directors

  1. What are the names/what do they do/HMRC references of all associated and group companies?
  2. What do they do? Be prepared for some quite detailed questioning here eg who are your major customers, who are your major suppliers?
  3. What’s the companies’ financial position, in overall terms?
  4. Do the directors owe any money to the company on directors’ loan?
  5. What’s the history of dividend payments?

B     HMRC

  1. How much is HMRC owed by the company for all taxes overall – PAYE, NIC, VAT, Corporation Tax?  What’s the figures for tax (PAYE/NIC and Vat) that will become owed soon on returns that have not yet gone it whether due to go in or not?
  2. How much do the group / associated companies owe HMRC in taxes overall? Are any of these companies subject to any TTPs themselves?  If so, what are those terms?
  3. Do the directors owe any taxes personally on self assessment, if so, how much?
  4. Can you confirm the amount claimed by HMRC in the letter / correspondence is accurate and agreed.
  5. Are all returns for the companies in A up to date / submitted, or are there returns that should have gone in but haven’t? ie how compliant are you?
  6. Are any refunds of tax due to this company or any group / associated companies, if so, what and how much?  (HMRC will be looking to grab them, not make the refund)
  7. How old is the HMRC debt? And what are the reasons for it arising?  Have those reasons been dealt with?
  8. Has the company or any group companies / associates ever had to reach any arrangements previously with HMRC over payment of taxes? Did they comply with those earlier TTPS?
  9. What’s the company’s history of Corporation Tax payments?

 

C   Bank / Finance Facilities

 

  1. What’s the current balance at bank?
  2. What facilities does the company and the other group companies have with:
    The bank
    The debt factors
    Any loan providers -eg on other asset finance, the HMRC debt payer
  3. Have you asked the above to provide the money to pay the HMRC debt? What was their response?  If not, why not?
  4. The debt factors – what are the terms of the agreement – advance rate, concentration and overall limits etc?
  5. What money has the directors invested in the business, how, when, how much, secured or mot, any repayments made? Can they invest any more now, or are they panning to in the forecast period?
  6. What other sources of funding have been or will be investigated, how much and on what basis?

 

Forecasts

 

  1. Have cash flow forecasts been prepared? If not, why not and why do you think you can fulfil a TTP?
  2. What do the forecasts show? What are the main assumptions made in preparing the forecasts? How quickly can HMRC be paid?
  3. Have they been looked over by an accountant / IP, if so, what were their views?
  4. What makes you think the forecasts will be achieved?

If you’d like some help or support in connection with a TTP, give me a call in the office on 01902 672323 or my mobile, 07813 102014.