What does HMRC want to see from a business requesting a Time to Pay Arrangement (TTP)?

R3’s tax working group have been updated by HMRC regarding their current position and proposals in relation to TTP. Please see a summary below.  

-A TTP proposal should be made in writing as this allows those submitting the opportunity to provide as much detail and supporting statements as possible. 

-The standard information that should be included:

• Description of business. 
• Annual total liability to tax. 
• Details of the nature and amount of tax to be deferred. 
• A short-term cashflow forecast.  
• The reasons why the request is being made (specifically the direct link to COVID-19 if coronavirus related). 

-HMRC would also want to see, in support a TTP proposal: 

• Details of the measures the company has implemented to allow it to pay the debt as quickly as possible.  
• An explanation of the parts others have played in ensuring the company present the best proposal possible. 
• An explanation of the other funding options explored before seeking TTP (e.g. banks, other lenders, shareholders, directors etc). 
• Any information to support why HMRC should provide support and take an element of risk when others are not willing to invest or inject capital into the company.