If you do not pay your tax or VAT on time, you’ll probably have to pay interest on the outstanding amount. You may also have to pay a penalty or surcharge. Do not hesitate to contact Altion Law for guidance and advice if you are struggling with VAT arrears and NIC/PAYE as Altion Law litigators have experience in negotiating with HMRC.
Time to Pay Arrangement
HMRC may offer the company extra time to pay if they think you genuinely cannot pay in full but will be able to pay in the future. Time To Pay arrangements allows companies to pay outstanding corporation tax, PAYE/NI or VAT liabilities by way of agreed instalments via direct debit method. The plan may last either 6 or 12 months or slightly longer. The company will have to pay interest on the amount which is paid late.
Top tip: It is important to keep these payments up to date and pay other taxes on time. If you do not, HMRC will normally cancel the arrangement and take legal action against the company straight away.
Difficulties in paying VAT
You might be able to set up a payment plan to pay in instalments with HMRC. You’ll need a Government Gateway account.
Top tip: There is no doubt that you have to pay interest if you pay late. However, you may avoid penalties by contacting HMRC as soon as possible.
HMRC’s Business Payment Support Service
If you want time to pay or having difficulties in paying VAT then you may call HMRC on telephone number on 0300 200 3835. It’s open from 8am to 8pm Monday to Friday, and from 8am till 4pm at weekends. If you were unsuccessful in reaching an agreement with HMRC then call us at Altion Law solicitors so that we can assist you.
If you’re having trouble paying PAYE and National Insurance on time, then the tax penalty regime can make the situation much worse and put you into further trouble. PAYE penalty amounts increase over a tax year, depending on the number of defaults, HMRC will charge interest on overdue amounts from the due date to the date the business eventually pays.
Top tip: Real Time Information Systems (RTI) allows for information about tax and deductions under the PAYE system be transmitted directly to HMRC by the employer every time an employee is paid. This will allow for payments not to be missed and saving any interest and penalties being incurred.
HMRC can take the following enforcement action if fail to pay:
• collect what you owe through your earnings or pension
• ask debt collection agencies to collect the money
• take things you own and sell them
• take money directly from your bank account or building society
• take you to court
• make you bankrupt or close down your business
Our team can assist you if you have concerns about liability as a director may impact your business or future business opportunities. If you would like to have a confidential discussion with a member of our team, if you complete our contact us form, we will call you back at a time that is suitable for you or you can contact us directly on 01908 414990.
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