What is Time to Pay (TTP)?

Time to Pay (TTP) is a formal arrangement with HMRC that lets you spread your tax bill over monthly instalments if you cannot afford to pay it all at once. It is not an automatic right — HMRC assesses each application on its merits.

When to apply: - You owe tax that you cannot pay by the deadline - You have a reasonable prospect of paying if given more time - You contact HMRC before the payment deadline if possible (though you can still apply after) - The debt has not been passed to a debt collection agency

• **How to apply:**
• Online: For Self Assessment debts up to £30,000, you can set up a payment plan through your HMRC online account
• Phone: Call the Payment Support Service on 0300 200 3835 for larger debts or business taxes
• Be prepared with: how much you owe, why you cannot pay, what you can afford monthly, your income and expenditure details

What HMRC will consider: - Your ability to pay — current income, expenses, assets - Your compliance history — are your returns up to date? - The amount owed and a realistic timescale for repayment - Whether you have tried other sources of funds (savings, loans)

Typical arrangements: - Most TTP plans run for 6–12 months, though longer periods are sometimes agreed - HMRC charges interest on the outstanding balance (at the late payment interest rate) - Payments are usually by direct debit on a monthly basis - If you miss payments, the arrangement may be cancelled and HMRC can take enforcement action

Important tips: 1. Don't ignore the problem — HMRC is more accommodating if you approach them proactively 2. File your returns on time even if you cannot pay — late filing penalties are separate from late payment 3. Keep to the arrangement — missing payments can result in the full balance becoming due immediately 4. Review regularly — if circumstances change, contact HMRC to adjust the plan