19 Apr

HMRC Time to pay Arrangements- Changes to payments terms

From 3 August 2015 HMRC are changing the way in which they will expect customers to pay future agreed time to pay arrangements.

Currently if a customer is genuinely unable to pay by the due date then HMRC will agree to payment of debt by instalments after the due date.

It will become mandatory to pay any regular time to pay arrangement by direct debit.

This change is because:

  • It is more cost effective and more secure than other payment methods

  • It removes the chance that the customer will forget to make payment

  • Payments are more likely to be correctly allocated

  • Reduces the need for subsequent customer contact, saving time for the customer and HMRC

  • Direct Debit scheme includes a guarantee to protect the customer.

In cases with exceptional circumstances where a customer is unable to set up a direct debit, perhaps because their bank account will not allow it. Then other payments methods may be agreed.

HMRC will not be revisiting any existing non-direct debit agreements but any new agreements with customers will be expected to be paid by direct debit.

This guidance will be updated at

Contact us if you need any further details.

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