IHTM38328 - Time to pay: your aims when
agreeing time to pay
The Debt Management & Banking caseworker should aim to
negotiate with the taxpayer a formal agreement that:
- sets out the amount to be paid, including
additional interest on the sum to be paid by informal instalments
up to the date of the last instalment;
- determines the amount to be paid and the
payment intervals;
- reviews the amount payable by instalments
at intervals not exceeding 12 months to determine if the payment
period can be reduced by increasing the level of the instalment
payments either in the amount paid or by reducing the instalment
intervals. (If there is a reduction in the period tax due is
outstanding you may need to renegotiate with the taxpayer a
reduction in the amount of interest anticipated by the
agreement);
- requires the immediate payment of all or
part of the outstanding tax and interest if and when additional
funds become available.
In any agreement you should reserve the right of HMRC to
withdraw from an agreement if any of the conditions agreed are not
observed or if a taxpayer defaults on the payment terms. For
further guidance on the format of any agreement, please see the
following sub-section on contract settlements (
IHTM38341).
