Record £4bn tax deferred under time to pay (TTP) arrangements

Record £4bn tax deferred

A record £4.1bn in tax was deferred under time to pay (TTP) arrangements in the run-up to the 31 January self-assessment deadline, according to data obtained by Price Bailey, which warns that some taxpayers will struggle to meet larger than usual payment demands

Jay Sanghrajka, tax partner at Price Bailey, said: “It is likely that the value of TTP arrangements will have surged even higher in the weeks leading up to the deadline.

‘The January payment deadline represents an unprecedented crunch for large numbers of taxpayers. For many taxpayers there will be three separate components to the tax bill instead of the usual two, which could mean paying double the amount that would normally be due by the end of January.

‘Paying tax by credit card might be a viable option for some taxpayers if interest-free deals are available to them. If they can clear the balance before the interest-free period expires, they will have avoided paying interest to HMRC under a TTP arrangement.’

However, taxpayers who have filed tax returns late or previously incurred penalties, are not eligible for TTP.