Time to pay arrangements with HMRC for corporation tax and/or PAYE

Published: Wednesday 29 April 2020

Businesses facing financial difficulties due to the COVID-19 pandemic may request a time to pay (TTP) arrangement with HMRC to defer payments of corporation tax and/or PAYE.

To do so, businesses can contact HMRC’s dedicated coronavirus helpline (details below). A number of our clients have also used HMRC’s webchat service with ease and success. We are finding that HMRC is being responsive to TTP requests and is generally granting three month deferrals. If you contact HMRC, they are likely to ask you how your business is affected by COVID-19. The depth and extent of questions raised by HMRC can vary on a case by case basis, but we recommend having cash and trading forecasts to hand when calling HMRC so that if asked, you can provide detailed responses.  

If HMRC agree a TTP arrangement with you, interest will still be charged on the late payment of tax. Interest rates are relatively low at 2.6% pa for both corporation tax (excluding instalment payments) and PAYE. A company will need to have submitted its corporation tax return for the period for which it wishes to agree a TTP arrangement, before contacting HMRC.

HMRC may also refund quarterly instalment payments of corporation tax where they are thought to have been overpaid as a result of COVID-19. Please speak to us separately regarding overpaid instalment payments, as these aren’t covered by HMRC’s coronavirus helpline.

Please contact us if you have any questions about TTP arrangements, would like assistance to make a TTP request or request overpaid corporation tax instalment payments.  

Finally, we would love to hear from you if you have agreed a TTP arrangement and find out how (hopefully!) easy it was and the deferral terms offered by HMRC. This will help us form an ever more rounded and accurate picture of how flexible HMRC are being with TTP arrangements which we shall continue to share with you.

Details to contact HMRC:
Telephone: 0800 024 1222 
Webchat: click here
Phone lines and webchats are open Monday to Friday, 8am to 4pm.

If you contact HMRC, you will need the company’s registered office address along with the ten digit unique tax reference for corporation tax enquiries and for PAYE, the PAYE reference number. The unique tax reference number can be found on the company’s corporation tax return or any corporation tax correspondence from HMRC.

Download our short- and long-term cashflow forecast templates here.

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Nick Haines
Nick Haines
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