You should also keep in mind that HMRC will insist that all other ongoing taxes are paid promptly when due. After all, there is little point in HMRC agreeing to a time to pay arrangement for VAT if you fail to pay corporation tax, for example.
So a typical time to pay arrangement will last twelve months and all other taxes must be paid when they are due or any HMRC agreement will be in default. If there is a default, you are likely to lose the confidence of HMRC and if so, this reduces the company’s options to settle with HMRC considerably. With this in mind, it is critical that you seek professional help for time to pay in preparing a cash-flow forecast to prove that the company can afford the arrears as well as any taxes that may arise. Do not be pressured into agreeing a monthly amount that you simply cannot fulfil and make sure HMRC understand this. They will have less confidence in you if you simply agree to whatever they suggest and default a month or so later. This is where some time should be spent making sure you can afford to pay the ongoing amounts.
Read More
Thus paying HMRC is a must and if you are late or having any problem with the tax payment it would become a fiscal crime in UK.
SHARE COMMENT