Time to Pay (TTP) Arrangement

Setting up a payment plan

• the relevant reference number for the tax you cannot pay, such as your unique tax reference number
• your bank account details
• details of any previous payments you’ve missed

You may be able to set up a payment plan online, depending on which type of tax you owe and how much you owe.

If you owe tax from Self Assessment

You can set up a Self Assessment payment plan online if you:

• have filed your latest tax return
• owe £30,000 or less
• are within 60 days of the payment deadline
• do not have any other payment plans or debts with HMRC

If you owe employers’ PAYE contributions

You can set up an employers’ PAYE payment plan online if you:

• owe £15,000 or less
• are within 35 days of the payment deadline
• plan to pay your debt off within the next 6 months
• do not have any other payment plans or debts with HMRC
• do not have outstanding penalties to pay
• have submitted any employers’ PAYE submissions and Construction Industry Scheme (CIS) returns that are due

If you owe tax from VAT

You can set up a VAT payment plan online if you:

• have filed your latest tax return
• owe £20,000 or less
• are within 28 days of the payment deadline
• do not have any other payment plans or debts with HMRC
• plan to pay your debt off within the next 6 months

You cannot set up a VAT payment plan online if you’re in the Cash Accounting Scheme, Annual Accounting Scheme, or you make payments on account.

If you cannot set up a payment plan online

You’ll need to contact HMRC.

They will ask you:

• if you can pay in full
• how much you can repay each month
• if there are other taxes you need to pay
• how much money you earn
• how much you usually spend each month
• what savings or investments you have

If you have savings or assets, HMRC will expect you to use these to reduce your debt as much as possible.

If you’ve received independent debt advice, for example from Citizens Advice, you may have a ‘Standard Financial Statement’. HMRC will accept this as evidence of what you earn and spend each month.

If your company is in tax debt

HMRC will ask you to propose how you’ll pay your tax bill as quickly as you can. They will ask questions about your proposal to make sure it is realistic and affordable for you.

You must reduce your debt as much as possible before setting up a payment plan. You can do this by releasing assets like stock, vehicles and shares.

HMRC may ask company directors to:

• put personal funds into the business
• accept lending
• extend credit