One of the key measures announced in the budget last week was that HMRC have extended the Help to Pay scheme (more details and telephone number here: https://www.gov.uk/difficulties-paying-hmrc).

Help to Pay has always been in place and is available in some situations where you are struggling to pay a tax bill, this can be any tax, so PAYE, VAT, personal tax etc. There is still interest to pay but you won’t get any penalties for late payment where it has been agreed with HMRC that you can pay in instalments.

HMRC have generally accepted a tax payer using this for the first time but less so afterwards, we now expect that to be increasingly loosened and significantly less interest charged.

Key points to consider:

  1. Think about contacting HMRC regarding Help to Pay for any tax payment before it is made.
  2. Think about the benefits of having that cash in, say, 6 months’ time rather than just being able to afford it now.
  3. You are likely going to need to contact HMRC about each tax to arrange separate agreements.
  4. Have your relevant references for each tax to hand before you call.
  5. Feedback from clients who have called is that you have to go past the due date for the tax before they will consider entering into an agreement. i.e. tax due 01.04.20 – wait until at least 02.04.20 before you call them

More will develop on this I am sure in an announcement due today (17.03.20) where it is expected more measures will be introduced to help small businesses and the self-employed.

Please keep an eye out for our future emails.

Please also, if you do contact HMRC about this, feedback to us – this will be invaluable in the support we give you.

If you want to discuss anything, please contact us.