HMRC Time to Pay Scheme

As a response to the Coronavirus crisis, the HMRC Time to Pay Scheme is being extended to allow breathing space for businesses and the self-employed from their HMRC tax liabilities. The scheme is aimed at helping those businesses who are struggling with cashflow as profitability takes a dip.

For those unable to pay due to Coronavirus, HMRC will:

  • agree an instalment arrangement, each one is agreed on a case by case basis, tailored to your individual circumstances and associated liabilities.
  • suspend any debt collection proceedings
  • cancel penalties and interest where you have administrative difficulties contacting or paying HMRC immediately

You will need to contact HMRC before the debt becomes due

How does it work?

  1. File the appropriate tax return (VAT, CT, SA) as usual and on time. To establish the tax debt with HMRC. (If no return has been filed, you will not be able to discuss the time to pay scheme with HMRC). 
  2. Contact HMRC on 0800 0159 559
    1. You will be asked which debt you would like to discuss a time to pay arrangement for, therefore will need details of the tax reference number and amount you are finding difficult to pay.
    2. You will need to evidence the cashflow issues you are facing or the reasons as to why normal payment terms are not feasible.
    3. You must make a realistic and reasonable offer. This means don’t suggest a payment which you know is not feasible for payment.
  3. Typically, HMRC will agree a 3 month payment plan, usually with a monthly instalment required. Do bear this in mind when considering your cashflows for the business and prior to making the call, what is going to work best for you.

HMRC number 0800 0159 559

Call lines are open:

Monday to Friday, 8am to 8pm
Saturday, 8am to 4pm

We can contact HMRC on your behalf and support your review of cashflows. So please get in touch on either 01604 678470 (Sywell) or 01933 312950 (Rushden) and let us know of any HMRC debt concerns you might have.

Keep in touch

We keep our clients up to date with BIG changes via our tips and tax advice bulletins, which will be sent by email.

These will include deadline reminders, particularly HMRC related, legislation updates and tax planning ideas. Where a change affects a client directly, we will, of course, be in touch personally, but at least these bulletins will give our clients advance warnings of changes ahead. Simply complete the form below to register.

Sign up here »


Get in touch

Northampton: 01604 678470

Milton Keynes: 07957 601496

Corby: 01536 216157

Rushden: 01933 312950

Email website@elsbyandco.co.uk