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HMRC have recently issued fresh policy guidance on their approach to collecting debts of debts. They are clear in their guidance that where customers find themselves unable to pay on time, they want to work with them and are always ready to help those who want to settle their affairs.

HMRC say that ‘Everyone is different, so the support we offer varies from customer to customer – we tailor our support to their individual needs. Where customers are facing difficulty in making a tax payment, they should ask us about affordable payment options. We’ll work with them to try and agree a payment plan – called Time to Pay – based on their financial position.

Any tax, duty, penalties or surcharges can be included in a Time to Pay arrangement. We typically have more than half a million arrangements in place at any one time, and 9 out of 10 of them complete successfully.

There is no standard Time to Pay arrangement. We discuss a customer’s specific financial circumstances, look at what they can afford to pay, and then use that to work out how much time they need. There’s no upper limit on the amount of time that someone can have to pay, but we will look for customers to repay their debt as quickly as possible while maintaining affordable payments.’

HMRC have set out that they aim to do everything they can to support customers who have incurred a debt and they stress that you should contact them immediately if you are worried about making a tax payment.

As always, we are happy to fully discuss any challenges you’re facing. Please get in touch with your regular contact at CB Reid as soon as you’re able to.

You can find more information from HMRC below: