Following a little digging around, The VAT Consultancy has helped a client reduce a default surcharge liability of more then £30k to below £5k – all from having a received a request for assistance with a time to pay application!
Rather than simply respond to the initial request we explored how the debt had accrued and reviewed the background to a series of default surcharge liabilities. There were a series of errors, oversights and anomalies and a number of the surcharges were appealed to the Tribunal. One of the Surcharge Liability Notices had not been received and another period was considered to have a reasonable excuse, following the demise of a major customer, requiring the client to arrange temporary re-financing terms. A further surcharge was appealed on the basis of it being disproportionate.
With the surcharges removed from some periods and the applicable rates reduced in others, the remaining liability was slashed.
As a quick reminder, a ‘Time to Pay’ Agreement is an agreed payment plan with HMRC to pay VAT debts (as well as other taxes).
An initial call to HMRC’s Payment Support Service on Tel 0845 302 1435 is required (before a demand for payment is received). They will ask initial questions regarding how much the debt is, how long you wish to pay this over etc. It is likely they will request some further documentary evidence to support any proposals put forward.
We have recently renegotiated some TTP agreements where uncontrollable factors have meant client’s are unable to stick with the original agreement. Be warned though that HMRC’s patience will run out if this occurs regularly and they will resort to legal action!
Recent press has suggested that HMRC are getting tougher on agreeing TTP agreements – we would be interested to know what everyone is experiencing out there…….