"There was a lot of other stressful issues going on in my life at the time of the bankruptcy and I have to say without Stuart’s advice and help I don’t think I would have gotten through it as well as I have. I cannot thank Oakdale enough. I would recommend them very highly."

BUSINESS INDIVIDUALS

How to Negotiate a TTP Arrangement with HMRC

Nearly all businesses that become insolvent will have a debt with HMRC, and often HMRC is the only real creditor of note. It is important to act quickly when falling into arrears with them.

In the last few years, HMRC has been quicker to act against businesses that are in tax arrears with their VAT, PAYE, Corporation Tax or CIS. The introduction of a number of electronic filing systems now means such businesses will be detected more easily than ever before.

Depending on your business' circumstances, it may be possible to negotiate more time to pay your HMRC debt. This is commonly known as a Time to Pay arrangement (TTP). A TTP arrangement made with HMRC grants the business a period of time to clear any arrears; which is typically 6-12 months. However, this can sometimes be longer.

When determining whether to grant more time, HMRC will want to know the following:

  • The reason the business has fallen into difficulty
  • The proposed monthly repayments
  • How that figure has been calculated

The best way to demonstrate all of this is in writing and by providing a realistic cash flow forecast for the period in question. Directors often find this quite difficult to do. If that is the case, it is important they instruct a professional firm like Oakdale to assist them.