Business: Unpaid Taxes

Treasury written question – answered on 3rd July 2018.

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Photo of Anneliese Dodds Anneliese Dodds Shadow Minister (Treasury)

To ask Mr Chancellor of the Exchequer, what criteria are used by HMRC when deciding whether to agree Time to Pay arrangements with companies.

Photo of Mel Stride Mel Stride Financial Secretary to the Treasury and Paymaster General

HMRC uses discretion when granting Time to Pay (TTP) arrangements provided the following principles are followed: ·

Objective criteria are applied in each case.

TTP arrangements are entered into on a case-by-case basis.

TTP is only agreed where HMRC is satisfied that the customer cannot pay their liability on the actual due date(s).

The customer offers the best payment proposals that they can realistically afford. If their ability to pay improves during the TTP period then they must contact HMRC and increase their payments/clear the debt.

TTP is only agreed where HMRC believes that the customer will have the means to pay the taxes included in the TTP arrangement and any other taxes outside the arrangement which become due during the TTP period.

The TTP period is as short as possible.

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