Time To Pay

Effective cash flow management is a critical aspect of running a successful business, especially in challenging economic times. For businesses in the UK, the concept of “Time to Pay” (TTP) offers flexible solutions to manage tax liabilities, supplier relationships, and operational cash flow. Below is a breakdown of how TTP arrangements with HMRC, suppliers, and invoice factoring can provide much-needed financial relief

With our teams Heritage and decades of Experience in Insolvancy and Business restructuring, we are confident we can help find you a solution to take some of the Cash Flow headaches and difficulties away, allowing you to focus on running and building your business.

Time to Pay Arrangements with HMRC

The UK government’s Time to Pay (TTP) scheme, administered by HMRC, allows businesses facing temporary financial difficulties to spread their tax payments over an agreed period, rather than paying in a lump sum. This arrangement is particularly helpful for businesses dealing with corporation tax, VAT, PAYE, or self-assessment liabilities. Key Features of HMRC TTP Arrangements:

• Eligibility: Businesses must demonstrate genuine short-term financial challenges while showing that the business is viable and capable of repaying over time.
• Application Process: Businesses need to contact HMRC as early as possible, preferably before payment deadlines, to negotiate a repayment plan.
• Terms: Repayment periods typically range from 3 to 12 months, though longer arrangements may be possible in exceptional circumstances.
• Benefits: Avoidance of late payment penalties and reduced stress from immediate lump-sum obligations.

Example: A retail business experiencing seasonal fluctuations in sales might find itself unable to pay its VAT bill on time. Through a TTP arrangement, the business could spread the payment over 6 months, enabling it to maintain operations without defaulting.

Managing Suppliers with Time to Pay

Negotiating TTP arrangements with suppliers can be an effective strategy for businesses needing to manage short-term cash flow challenges. By communicating proactively and transparently with suppliers, businesses can maintain healthy relationships while gaining more time to settle outstanding invoices.

Advantages of TTP with your Suppliers:

• Preserves supplier relationships, ensuring continuity of goods or services.
• Reduces the immediate pressure on cash flow, allowing the business to focus on recovery.
• Keep supply chain to the business to allow it to continue trading
• Head off court action and CCJs.

Our Team with years of exeprience can expertly deal with your suppliers, or help you deal with them in a professional structured way, helping give them confidenc ein your ability to setup and stick to a payment plan that will allow you to keep trading and them to get paid.

Our Team Of Experts Can help cut through the paperwork and process for you, taking away the stress of having to deal with HMRC, let our team care care of the process end to end for you.