| It is currently possible to spread your tax bill over a | | | | companies who no longer have any equity in their |
| number of months with the Government's ‘Time to | | | | assets (falling property prices etc.), so if HMRC did go |
| Pay' programme; there are now a number of | | | | down the route of ‘winding the business up', or |
| companies set up to negotiate on a clients behalf with | | | | making an individual bankrupt this would not actually |
| HMRC but with ‘Time to Pay' rumoured to be | | | | release any cash; and therefore the tax payment plan |
| coming to an end this year is there a future for | | | | is the only way HMRC will get any money back. |
| spreading a tax bills over a number of monthly | | | | We have started to see therefore the rise of the |
| payments? | | | | specialist company that negotiates with HMRC on |
| Many businesses this year are having trouble paying | | | | behalf of the client. These companies will do all the due |
| their tax for good reason - good year a couple of | | | | diligence on a client to ensure they can afford the |
| years ago, bad year last so no cash to pay the tax. | | | | payment plan and future tax bills, plus will take all the |
| The Government recognised this and in an attempt to | | | | ‘payment plan headache' away from HMRC. |
| reduce the number of businesses being ‘wound up' | | | | Clients often also like dealing with a third party |
| by HMRC put into place ‘Time to Pay'. | | | | company as they are generally easier to deal with and |
| The programme has reportedly been very successful | | | | friendlier than HMRC; it is also worth noting that some |
| in reducing the number of business insolvencies and as | | | | of these specialist companies often achieve payment |
| a result it is rumoured that time to pay will cease | | | | plans of 3 to 5 years compared to the 6 – 12 |
| sometime this year (we suspect sometime after the | | | | months being achieved on ‘time to pay'. |
| Election). | | | | So if you feel that a tax payment plan is something to |
| Overall this programme has been successful but on | | | | consider for yourself, your business, or a client, there |
| the ground businesses people and accountants have | | | | are a number of pro's and cons: |
| had mixed results in securing a suitable plan for | | | | Pro's |
| themselves and their clients. The reason is simply that | | | | - Immediately reduces the cash burden on a business |
| HMRC are not an organisation that as a general rule | | | | - No entries are put on a credit file |
| sets up payment plans with people, and therefore | | | | - Typically interest is frozen |
| many of them are not very good at doing this. | | | | - Will afford a client time |
| The essence of a good payment plan is one that | | | | Con's |
| someone can afford and will stick too, though there | | | | - This can only be done once |
| are many examples of HMRC plans failing because | | | | - Once agreed the client must never miss a payment |
| the customer could not keep up with their agree | | | | - A previous poor record with HMRC will reduce the |
| payments (which were too high). Many people will tell | | | | chances of agreeing a plan |
| you that they were so happy to have a plan arranged | | | | Using two of the countries leading providers of the tax |
| and not have to pay the money now, that they just | | | | payment plan service if you would like to find out more |
| accepted the plan HMRC proposed. | | | | information or discuss whether you or your business |
| So although ‘Time to Pay' is probably coming to an | | | | could qualify please call us on 01883 770 050 or email |
| end, there is still a large place for the tax payment plan. | | | | us at info@clearcutbsiness.co. |
| Quite simply because there are many people and | | | | |