Mark McLaughlin warns that taxpayers may receive little sympathy from the tax tribunal in late payment penalty appeals if ‘time to pay’ could have been arranged with HMRC.
Individual taxpayers often encounter cashflow problems, which makes paying tax by statutory deadlines difficult, if not impossible.
Business taxpayers suffer more than most, as their profits can fluctuate widely, and balancing tax payments generally become payable some months after the income was generated; funds to pay the tax are often spent instead of being set aside. Late tax payments result in interest becoming due, in addition to possible penalties.
TTP arrangements
However, there is a potential escape from late payment penalties. If a ‘time to pay’ (TTP) arrangement is made with HM Revenue and Customs (HMRC), this allows taxpayers who cannot pay their tax on
