HMRC announces new Time to Pay rules

Date: 30th March 2010

Businesses looking to take advantage of the extension of HM Revenue & Customs' (HMRC) Time to Pay initiative may need to provide more information than in the past depending on how much they owe.

The department has announced that as of next month, organisations with tax debts of more than £1 million will be required to provide HMRC with an Independent Business Review (IBR).

This report will inform HMRC of an enterprise's current trading and financial position, highlight profit and cash flow projections and outline existing bank arrangements.

HMRC's Nick Lodge said: "In view of the amounts of tax involved, HMRC needs to ensure that decisions about large time to pay arrangements are supported by a comprehensive audit trail, to help guarantee better value for money and fairness for all taxpayers.

"We remain committed to supporting compliant, viable businesses through periods of temporary difficulty by providing Time to Pay arrangements."

Time to Pay arrangements are offered under HMRC's Business Payment Support Service and cover PAYE, VAT, National Insurance and any other HMRC tax debts.