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Time to Pay Arrangements (TTP) - How we can help your customers negotiate them

Author: Simon Glyn
9 February 2011

Many of our banking clients have customers in their portfolios who have undertaken or need to undertake a TTP to assist current cashflow challenges.

This can be quite daunting if they have not previously experienced it, or even more so if they need to renegotiate an existing TTP.

• Our case experience since last year’s General Election and Emergency Budget in June 2010, which is supported by some statistics released from HMRC in the autumn of 2010, is that HMRC is hardening their stance towards businesses who have HMRC arrears.

• We are seeing far less flexibility from HMRC when businesses approach them to enter into or try to renegotiate the terms of a TTP. Indeed, there are indications that they may sometimes instruct debt collection firms or issue winding up petitions with little or no notice, which is clearly threatening the ongoing viability of your customers.

With this in mind, we have developed a bespoke product which is aimed at assisting directors, who perhaps may lack some level of credibility with HMRC due to the nature of their previous dealings, in order to assist them in agreeing a new or revised TTP.

On behalf of the directors, we will prepare a report for submission to HRMC, in support of their request for a TTP arrangement. We will include appropriate financial information and commentary to substantiate the request.

Our report costs a flat rate of £2,500 plus VAT and is generally around 4 pages in length, incorporating the following content:

• Introduction
• Background
• Recent trading performance
• Current financial position
• Cashflow forecast
• Proposal to HMRC
• Any further matters for consideration
• Conclusion

We are engaged by your customer to act on their behalf and our report follows the above format with the specifics changed for each client.

Whilst we cannot guarantee that HMRC will support the directors request, we have had, to date, a very high success rate. If we felt, following our review of the business, that the business was not viable or could not deliver on the HMRC proposal, it would not be appropriate for us to put our recommendation to the report. We would however discuss our views with the customer, trying to add value to help them consider if any other solution may be more applicable.

This HMRC TTP product is now being introduced by our banking clients to their customers, as it is a good way for a bank relationship manager/director to add value to their customer in an hour of need.

Should you require any further information, please do not hesitate to contact Simon Glyn on 07768 467 042 or email us using the online form below