Require Immediate advice? 0800 063 9262
For a company already struggling with increasing costs, a tax bill from HMRC arriving can be the final straw. So, what are your options if you cannot afford to pay HMRC what you owe on time and is it possible to pay your tax bill through a series of monthly instalments?
Concerned about the National Insurance increase?
For the 2024-25 tax year, the rate of employer National Insurance increases from 13.8% to 15% adding yet more pressure onto already squeezed cash flows. If you are worried about the impact this could have on your company’s finances, talk to the experts at UK Liquidators. As licensed insolvency practitioners we can explain your options and help you plot a way forward. Call today on 0800 063 9262.
It is possible to pay HMRC through a series of instalments, however, this is something you must come to an agreement with with HMRC; you cannot simply begin paying your tax bill in this way without prior approval nor will HMRC offer this as a possible payment option without you contacting them.
Paying HMRC in instalments can be done by entering into a Time to Pay Arrangement. This is a scheme run by HMRC in order to give companies who are struggling with their cash flow, the ability to clear their tax arrears over a longer period of time.
Liquidation Portal
For Company Directors
While each Time to Pay arrangement is individual to the company involved, as a general rule, HMRC expect companies to bring their tax affairs up to date within 3-6 months. However, depending on the situation, Time to Pay arrangements of up to 12 months can be negotiated in certain circumstances.
In order to be given a Time to Pay arrangement, which will allow you to pay your tax arrears through a set of monthly payment instalments, you must enter into negotiations with HMRC, beginning with proposing a repayment amount which is affordable to your company.
This part of the process is a very fine balancing act between offering enough to satisfy HMRC that you can bring your tax account up to date in a reasonable length of time, while not offering too much that HMRC feels you will be unable to keep up with the payments.
Remember, you will be expected to pay any tax bill which falls due during the Time to Pay arrangement in full and on time; it is only your arrears that will be included in the instalment plan. Ensure you do not overstretch yourself when proposing an instalment plan to HMRC as this will only make your situation worse.
If you would like someone to handle these negotiations with HMRC on your behalf, the licensed insolvency practitioners at UK Liquidators can help. We have extensive experience in liaising with HMRC and can work alongside you to formulate a repayment proposal that is both affordable to your company while also being satisfactory to HMRC.
Start your online liquidation today
If you have decided liquidation is the right option for your limited company, you can take the first step and begin the process online using our online portal. Starting the process is quick, simple, and can be done at a time that suits you. Your information will be submitted to your local UK Liquidators insolvency practitioner who will be with you every step of the way. Click here to start your company’s liquidation online.
If your request for a Time to Pay instalment plan is refused, we can help you come up with plan b. This may involve entering into negotiations with all of your company’s outstanding creditors to ease your company’s cash flow problems, or alternatively, we may need to explore ways of bringing the business to an end if its financial problems are insurmountable.
If you have debts to HMRC you cannot afford to repay, call the UK Liquidators team today for immediate help and advice.
By completing the test, you will receive:
If you are considering liquidation for your company, taking expert advice at an early stage is crucial. At UK Liquidators, our team of licensed insolvency practitioners are committed to providing limited company directors with the help and advice they need to make an informed decision.
Looking for immediate support?
Complete the below to get in touch