It’s time to pay!

Timer

A Time to Pay (TTP) agreement with HMRC provides companies with valuable breathing space at a time when they are experiencing cash flow pressures. Businesses looking to secure a TTP must ensure they are aware of the necessary requirements and how it can impact the business.
Firstly, what can a TTP achieve? In overall terms it helps give a breathing space while a business addresses cashflow issues, generally as part of a wider plan to get the business back on a stable footing.

When are they requested? Generally in the face of often quite extreme financial pressures, of which the causes may be many and complex.

Why is help beneficial in seeking a TTP request? Principally, at times of increasing pressure, management time is extremely valuable – dealing with a credible TTP application is yet another burden on management time and resource. Not only can De Novo Advisory assist by freeing up this precious time, we can also provide workable solutions to address underlying issues in the business, leaving key people to focus on keeping the business running as smoothly as possible.

What might these solutions be? Often, TTP is only part of the solution, and some element of our other Services runs in parallel with the TTP, to ensure solutions beyond the immediate short term are also covered.

These may include support around cash management, for example help with forecasting and the “real” cash requirement, stakeholder management, for example leveraging our experience of working with HMRC, funders, finance companies, and other stakeholders, as well as supporting operational improvements to drive cash and profitability in a way that complements existing resource rather than duplicating. Finally, refinancing may be appropriate, and here we can recommend the suitability of alternative sources and structures, as well as making the appropriate introductions.

Common concerns for businesses ahead of an applications include:

What must HMRC be satisfied of in agreeing to a proposal? 3 key elements are that they believe the debt really can’t be paid on the due date, you really are putting best possible proposal forwards and most importantly they are convinced that you not only have ability to meet the proposal, but also that you remain up to date with new obligations falling due.

Length of time available? In most cases 12 months is the absolute maximum, but as far as HMRC are concerned the shorter the better.

Track Record Issues? This is important but as long as there is honest disclosure and a credible proposal, a few missed payments in the past will not automatically count against the application. HMRC don’t like repeat business. Depending on circumstances, renegotiation is possible but a carefully presented application will be fundamental.

Working with De Novo Advisory in making a TTP proposal to HMRC will ensure you are in good hands. Our experience dealing with HMRC and situations of financial stress ensure swift and effective action. We can provide clarity on exactly what is required, draft the application, robustly challenge the supporting cash forecasts, and be the key contact point with HMRC.

@coachinception A huge well done Stuart. Delighted to see your hard work, contribution and impact recognised. Congratulations.