Do you need time to pay?

HMRC has a set up a dedicated phone helpline to support businesses and self-employed people concerned about not being able to pay their tax bill due to coronavirus.

And the government has also announced that during the outbreak the usual 3.5 per cent annual interest on deferred tax payments will be waived.

It is among a package of measures introduced in a bid to support businesses struggling to cope with the impact of the pandemic.

HMRC says the new hotline is a way for any business or self-employed individual concerned about paying their tax as a result of the crisis to get practical help and advice.

And it has drafted in up to 2,000 “experienced call handlers” who it says are available to support businesses and individuals when needed.

For those who are unable to pay their bill due to coronavirus, the taxman will discuss their specific circumstances to explore:

• Agreeing an instalment arrangement
• Suspending debt collection proceedings
• Cancelling penalties and interest where there are administrative difficulties contacting or paying HMRC immediately

HMRC says that each case will be negotiated on an individual basis, with bespoke Time to Pay arrangements. The helpline number is 0800 0159 559.

It is critically important that businesses that are facing these difficulties address the situation as soon as they can.

In most case, when it comes to Time to Pay the business involved will need to put its repayment offer in writing and produce information on its cash flow. Getting that negotiation right is also important.

If you are concerned about your tax liabilities, need advice about Time to Pay arrangements and if it is the right path for you or are worried about the impact of coronavirus on your business please give me a call on 01772 430000