According to HM Revenue & Customs, as at 3 January 2023 almost half (5.7 million) of the 12 million individuals expected to file a tax return are yet to do so. At the corresponding time in 2022 that figure stood at some 4 million.
HMRC have made it clear the forgiveness for late filing shall not apply in 2023 so many could face an initial £100 fine. That fine can increase for continued non-filing.
No doubt there will be many reasons for late filing but one of those is likely to be a fear the taxpayer will be unable to pay the liability arising. Burying your head in the sand is no solution. Indeed, it can become a large and costly problem.
Contrary to belief, HMRC will look at assisting a taxpayer where affordability is an issue, especially now when the cost of living issues are taking hold of the Country.
Should you find yourself in a position where you cannot afford to pay your tax liability by the due date then HMRC will consider a time to pay agreement (“TTP”) that permits you to spread the payment over a period not exceeding 12 months. If you owe less than £30,000 you can follow this link:
The principal criteria for a TTP are that you:
- have applied for a TTP within 60 days of the payment deadline.
- have filed your 2020 to 2021 tax return
- owe £30,000 or less
- have no other tax debts
- have no other HMRC payment plans set up
It would be wrong to imply HMRC simply agree to TTP upon application. Firstly, HMRC have no obligation to agree, and consideration is likely to include the above criteria, together with a review of your compliance history. Should the tax liability be over £30,000 you are encouraged to telephone HMRC to discuss a TTP. PBC are happy to advise anyone with debts owed to HMRC, whether as your only creditor or as part of a wider financial matter.
If you require any advice or assistance on any insolvency-related issue, then please contact PBC Business Recovery & Insolvency to discuss and advise on your situation on 01604 212150 or email to email@example.com. Alternatively, visit www.pbcbusinessrecovery.co.uk for further information.