Time To Pay (Introduction)

A company may make a proposal to have time to pay where it is unable to settle its liabilities

• On or before the normal due date
  
  Or, for a Quarterly Instalment Payment case
  
  
• On or before the instalment due date (s)
  
  For more information about Quarterly Instalment Payment due dates see section 'Quarterly Instalment Payments' in the 'Payments' business area

You must establish where a company cannot pay and in these cases time to pay should be considered as an acceptable and sensible alternative to recovery action. In such cases you should support companies by agreeing an appropriate payment plan.

This does not mean that time to pay is an automatic right, where a company has means to pay then they are expected to make payment in full by the due date.

All time to pay proposals are

• Considered

• Granted only if certain conditions are satisfied

Payments in time to pay cases may be made before a return has been delivered and therefore no charge will exist. In these circumstances, unless the Clerical Interest Indicator ( CII) is set to 'Y', the computer will

• Review interest automatically
  
  
• Calculate the amount of late payment interest payable

If this equals or exceeds the administrative limit COTAX will

• Add the interest charge to the company record

If a payment is received

• In advance of the charge and is for the full amount see subject 'Suspense / Payments in Advance' in section ‘Processing Payments’ in this business area
  
  
• With conditions attached see subject 'Payment With Conditions Attached' in section ‘Processing Payments’ in this business area