Business Payment Support Service - additional information for tax agents and advisers
The scope of the service
This new service is designed to assist all businesses (large and small) that will be unable to pay their tax. The service is primarily available to self-employed people and companies but can be used by any of your clients who are having difficulty in meeting their tax liabilities. It covers most taxes and duties including Income Tax, Corporation Tax, VAT, PAYE and National Insurance.
In order to qualify the business/client will be:
- in genuine difficulty
- unable to pay their tax on time
- likely to be able to pay if HM Revenue & Customs (HMRC) allowed them more time
For our part, we will look to be flexible and agree Time to Pay arrangements on a case-by-case basis to bring the business's/client's tax back up-to-date on a timescale that is reasonable and appropriate to the situation.
We would very much encourage all agents and advisers to advise clients to make use of the service where it is appropriate to do so.
Using the service on your client's behalf
If you have authority to act on your client's behalf, through a form 64-8 or an online agent authorisation, we can discuss your client's tax affairs with you. We can also agree a payment arrangement with you - but we may also need to speak to your client to set up payments through direct debit.
If you wish to discuss a client business' payment position that is not already the subject of a Time to Pay arrangement and you hold an authorisation to act on behalf of that client, you should call the Business Payment Support Line Tel: 0845 302 1435.
The Business Payment Support Line deals with all values of debts that are becoming due although some larger and complex cases may need to be referred to a specialist to deal with. Debts which are overdue may also have to be referred to a specialist who will contact the customer or their agent within four working days.
For all other issues you should continue to use the regular contact numbers, such as the Agent Dedicated Lines for Self Assessment and PAYE matters.
Action where there is an existing Time to Pay arrangement
The Business Payment Support Line supplements the existing Time to Pay arrangements. Where the client has an existing Time to Pay arrangement but has additional concerns as to what they can pay, you or they should contact the original office that contacted them to discuss further options.
Contacting HM Revenue & Customs - agents and advisers
If your client is under the Construction Industry Scheme and makes a Time to Pay arrangement before a payment is due, it will not affect their gross payment status.
Surcharges
VAT default surcharges will not be charged if the business contacts us before the payment is due and agrees a Time to Pay arrangement. Entering into the Time to Pay agreement will not be treated as a default so it will not extend the 12-month rolling period nor will the default percentage increase because of the Time to Pay arrangement, provided the terms of the arrangement are adhered to.
Similarly, a surcharge can be avoided on late payment of income tax where a Time to Pay agreement is entered into before the relevant surcharge date AND the terms of the agreement are adhered to.
Partnerships
The Business Payment Support Line officer or specialist will be able to discuss the Time to Pay arrangements of individual partners with the agent at the same time as discussing the affairs of the partnership, provided the relevant written authorities are in place. However when setting up the Direct Debit arrangements for the individual partners it is likely that the officer will need to speak to the individual partners themselves.
Where the partners wish to use the partnership bank account to pay the individual liabilities, we will need to set up separate direct debits for each partner and where appropriate contact the partners who are able to authorise this arrangement.
We'll let you have more details soon about the form of authority we will require to enable us to have discussions with the partnership agent, where a different agent is authorised (under the form 64-8) to act for the partner.
Reviewing or extending the arrangements
If the circumstances of the business/client change and they become unable to make the payments covered by the agreement, as well as keeping up to date with any new liabilities, then we will want them (or their agent) to get in touch with us before they miss any payment.
Provided we are satisfied that the business continues to be viable we will consider amending and extending the agreement. However it is likely in such circumstances that we will need to ask more detailed questions of the client in order to satisfy ourselves that the business is indeed viable and capable of sustaining a realistic arrangement. This may mean that such discussions will not be handled as quickly as an initial approach to the BPSS and may need to be transferred to a specialist unit to deal with.
Appeals and complaints where agreements cannot be reached
If you think we have been unreasonable in refusing a request you can contact us in the normal way and ask for our decision to be reviewed, just as you would any other decision with which you were unhappy.
For more information about Time to Pay where large amounts are involved you can consult the HM Revenue & Customs Debt Management Manual.
Debt Management Manual: Time to Pay
31 January Self Assessment payment deadline
We hope that you will encourage your clients to use this service.
The days leading up to 31 January are likely to be a very busy period for the Business Payment Support Line. With this in mind we would ask you to contact us early once the Self Assessment liability is established and payment difficulties have been recognised.
