HMRC do recognise that sometimes companies get into cash flow difficulties. They will allow payment plans if they meet several criteria:
- They happen in isolated situations – not as a regular occurrence;
- They are proposed with full disclosure of the reasons needed and the budgets and cash flows of the company;
- They reflect the maximum reasonable payment rate to HMRC;
- They are legal (there are situations where they may not be);
- They are likely to result in the company being able to continue in business in the longer term (in other words, they will not grant a payment plan for a company that is, in their opinion, insolvent).
In these situations, we are able to assist you in arranging a payment plan, although we are very likely to recommend that the actual conversation occurs directly between you and HMRC with us merely advising you in the background. This commonly gives the best outcome.
To find out more, call us on +44 (0)330 024 3200, and talk to one of our business tax experts.