HMRC Final Statistics show significant reduction in Time to Pay Arrangements sparking speculation that the TTP scheme may be wound down
Figures released by HMRC in July show a total of 15,490 Time to Pay (TTP) Arrangements were agreed in the second quarter of 2011 compared to 30,160 in Q2 2010, a year-on year reduction of 49%. Statistics also show a 40% increase in the number of requests refused in the first half of 2011 compared to the same period last year – in June 2011, 1 in 5 requests were rejected. A spokesman for HMRC has suggested that the increase in the number of rejections could be down to repeat requests, a belief that some businesses are not viable and HMRC’s refusal to offer TTP arrangements to companies that pay dividends.
This is the last time that figures relating to the TTP scheme will be published and whilst this has led to speculation from some parties that it will be withdrawn, HMRC state that there are no plans to close the Business Support Unit or change the TTP policy.
We believe the TTP scheme will continue and the reduction simply demonstrates the need for businesses to have a robust plan backing up their application. The statistics speak for themselves but could reflect the stance by HMRC to reject the “DIY” TTP proposals put forward by Directors historically. Although HMRC have toughened their stance on acceptance, a well thought out plan with a sensible rationale as to why it should be supported will always be considered by HMRC.
Whilst the Revenue’s current stance is concerning for Directors and Funders alike, Ashley continue to negotiate successful TTP Arrangements – providing that the business is viable.
A Director may only have one chance to negotiate a TTP Arrangement and it is therefore vital that a comprehensive and robust plan is presented at the outset to ensure that HMRC give due consideration to a proposal.
In recent months Ashley has had great success following a number of short presentations to fellow professionals who have subsequently contacted us to assess the likelihood of their clients obtaining a TTP Arrangement with HMRC. As a result of our involvement we have helped a number of businesses avoid potential Recovery action by HMRC.
If you need help contact Lisa for an initial discussion and mention TTP:
Phone: 0161 233 6373