One of the most common reasons directors seek HMRC time to pay arrangements is corporation tax arrears.

In this article, we’ll explore the conditions under which you can negotiate this, and the due process to ensure your best chance of success.

How Long can you Delay Paying Corporation tax?

Corporation tax must be paid by a final date of 9 months and one day from the end of your accounting period.

Late payments will accrue an arrears penalty of 3%.

Will HMRC Give me Time to pay Corporation Tax?

HMRC understands that occasionally businesses need help and as such they are open to time to pay arrangements on Corporation Tax, as well as VAT and PAYE.

That said, they will only do so if you can convinced them that you have good reasons for asking, along with supporting evidence to back this up.

They will typically not agree to longer terms than 12 months (although there is talk that COVD-19 may change this) and you should only propose repayment terms you feel you can manage.

They will also be looking for evidence that your business is not insolvent, and will look at your business sector as a whole for trends that may impact their decision.

Negotiating Time to Pay with HMRC

For larger sums there is certainly a benefit to enlisting the services of an HMRC mediation expert such as ourselves. HMRC negotations are best tackled by experienced professionals who understand the expectations of the revenue, and how to present the information in a way that offers the best chance of success.

If you’re the director of a company with substantial corporation tax arrears, do get in touch with us today and one of our senior tax experts will offer you a consultation.

Is there a Corporation tax helpline?

You can telephone HMRC on this number, and you’ll need your UTR,

0300 200 3410