Options Paying HMRC PAYE Arrears

Options Paying PAYE HMRC Arrears. Written by John A Waller, Director. Reviewed: June 25th, 2024.

What are the options for paying PAYE HMRC arrears, dealing with HMRC Debt Management, and clearing HMRC debt?

PAYE Time To Pay

The HMRC may consider arranging a Time to Pay with HMRC Arrangement as part of your options for paying PAYE Arrears.
To qualify, you must the Company repay the PAYE over twelve months or sooner. This also includes any other tax owed in that tax year.

You cannot set up a payment plan if HMRC believes you will not keep up with the repayments. If HMRC cannot agree on a payment plan with you, they will pay the total amount you owe.

What do PAYE HMRC payments include?

The PAYE tax bill in the UK will include the following:-

  • Employee income tax deductions;
  • Class 1 and 1B National Insurance;
  • Student Loan repayments;
  • Construction Industry Scheme (CIS) deductions;

Company Voluntary Arrangement (CVA)

For companies with tax issues, HMRC arrears often hide a far more sinister problem with theCompanytheCompany’ss
When the Company is under additional pressure from trade creditors and asset-based lenders (ABLs), a voluntary company arrangement (CVA) may provide better prospects. With a CVA, you can pay off your Company taxes over 60 months if approved by creditors. Further, you may not have to pay 100p in the £1.

Please note that a CVA is an insolvency procedure, though it does not cease to trade. A CVA can be an overwhelming tool for rescuing a company.

Options paying for PAYE HMRC Arrears – Invoice Finance / Factoring

Invoice finance involves selling unpaid invoices for an accelerated payment credit. Unlike conventional banking, which usually withholds money from businesses that cannot demonstrate perfect credit performance, invoice finance evaluates the companitheCompanytheCompany’sstysed.

For further advice on PAYE. Please view ‘Raising Capital to pay ‘HMRC tax.

If you fail to pay the tax due, proven by the HMRC that payment was withheld deliberately and planned, they may issue you a personal liability notice.

Are PAYE arrears pulling your Company down? If so, contact John Waller on 0800 612 5448.

For further reading, view ‘Can HMRC hold Directors liable for outstanding tax Tax.

Section 121C of the Social Security Administration Act 1992 (SSAA 1992)

Section 121C, Social Security Administration Act 1992, permits holding company directors personally accountable where there seems to be fraudulent intent.

Further, Articles PAYE

Will the HMRC audit PAYE compliance?
Misuse of non-payment of PAYE to assist the company cash flow, with other management errors.
Why do the HMRC separate how they collect VAT and PAYE?
Deadlines set by HMRC for paying PAYE tax?
HMRC applies interest to late PAYE payments. Please read Companyy Can’t pay Can’tto HMRC.?

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If you need help understanding the best way forward for your company, we can provide confidential free initial advice. You can book a free virtual meeting or call us on 0800 612 5448..
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