Time to Pay Arrangements - Mandatory Direct Debit

Where a taxpayer has difficulty paying their tax liabilities HMRC may agree 'time to pay arrangements' whereby the taxpayer agrees to pay off the amount owing by instalments after the due date. These arrangements are only entered into where the taxpayer is genuinely unable to pay by the due date and is able to commit to agreed payments to bring their tax up to date.

HMRC have announced that where time to pay arrangements are agreed the payments will need to be made by Direct Debit.  This has always been HMRC's preferred method of collection but this became mandatory from 3 August 2015.

However, HMRC do state that:

'We recognise that there will be exceptional circumstances where a customer is unable to set up a direct debit, perhaps because their bank account will not allow it. In such cases payment by other methods may be agreed.'

Internet link: GOV.UK blog

Home Counties: 01525 222305

South West: 01305 265615

Home | Attribution | Contact us | Site map | Accessibility | Disclaimer | Help | powered by totalSOLUTION

Vatax Accounting LTD, 1st Floor Office Suite, 65 Moor End, Edlesborough, Dunstable, Bedfordshire LU6 2FL
Vatax Accounting LTD, 18 Marsden Street, Poundbury, Dorchester, Dorset DT1 3DH
Company No: 08390396. Registered in England. VAT Registration No. 173591783
© 2024 Vatax Accounting LTD. All rights reserved. We use cookies on this website, you can find more information about cookies here.