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HMRC Time to pay. That many? Really?

Time to pay has cropped during a couple of the recent CPD training podcasts.

It was mentioned on the recent VAT podcasts with Simone Hurst. In HMRC's latest annual report from 2021/22 they confirmed the following:

"We continued to support our customers* with their finances as they recovered from the pandemic, including offering ‘Time to Pay’ arrangements where necessary. By the end of 2021 to 2022, we were supporting 843,000 taxpayers in this way."

There is no split between the different taxes and this does relate to 2021/22. It is a staggering amount of taxpayers needing support, even allowing for the fact the economy was just peaking its head above the parapet after Covid.

Setting up a payment plan for the three taxes: income tax, PAYE and VAT can now be started online. There are different conditions for each of these taxes.

During the VAT podcast we mentioned HMRC's manual (DMBM800000) and their guidance which sets out HMRC's approach in this area. Clients with arrears or accountants advising may find the manual provides clear guidance before approaching HMRC. As Simone stated in the podcasts HMRC's view is that 'they are not a bank' and clients should explore all other financing routes as well as HMRC.

If you have a problem with VAT arrears Simone's consultancy are specialists in this area.

*Why do HMRC keep calling us customers? That suggests some sort of choice like Aldi vs Lidl vs Waitys vs Tesco. Can't we be called Taxpayers? - since that is what we are and there is nothing wrong with that.

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