Partner Article

HRMC toughens up on Time to Pay agreements

Companies are being warned that HRMC has begun to refuse Time to Pay applications where dividends are used as a form of remunerations.

Robson Laidler Accountants issues the advice in the wake of new figures, which show that 3,390 requests for time to pay were refused in the first quarter, in comparison with only 2,360 last year and 2,440 in 2009.

Graham Purvis from Robson Laidler said: “Until recently, more than 9 out of 10 applications for TTP arrangements have been granted and most first time applications for instalment payments for instalment payments are accepted.

“However, HRMC’s new position is that they will refuse a TTP on the grounds that the company has preferred to use the money elsewhere and therefore the shareholders should support the company.”

It is believed that the policies will hit small and medium sized businesses hardest, and could potentially cause cash flow problems, and even force businesses to enter into formal Company Voluntary Arrangements.

This was posted in Bdaily's Members' News section by Ruth Mitchell .