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HMRC internal manual

Debt Management and Banking Manual

HM Revenue & Customs
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Time To Pay (TTP): introduction: statutory right to pay tax by instalments

In some specific cases the customer has the statutory right to pay tax by instalments.

The legislation clearly details the types of tax covered by the statutory concessions and the circumstances in which they apply.


The legislation that covers cases where there is a statutory right to pay by instalments is:

  • Income and Corporation Taxes Act (ICTA)1988/S34(8) tax due on lease premiums
  • ICTA88/S137(4) employment income net underpayments (group N)
  • Taxation of Chargeable Gains Act (TCGA) 1992/S280 tax due on chargeable gain paid by instalments
  • TCGA92/S281 tax on gifts.

Dealing with requests

Where the customer has a statutory right to pay by instalments, they must advise HMRC that they wish to exercise that right. Debt Management and Banking cannot agree these requests.

SA cases

Requests to pay by statutory instalments must be approved by the office with SA technical responsibility. Arrangements for collecting payment by statutory instalments are handled by the office responsible for processing. To find out which office is responsible for processing and which has technical responsibility use the SA ‘Maintain Responsible Office’ function.

For more information about Statutory Instalment Arrangements see SAM80072.

COTAX cases

Where an inspector has agreed that the statutory provisions apply, they will:

  • determine the amount payable by instalments
  • set the clerical interest indicator
  • informally stand over the amount of debt to be paid in instalments
  • note COTAX with “statutory instalment case” and include the total amount and timescale of the instalment arrangement.

Other cases

In all other cases there is no right for any customer to be granted Time To Pay (TTP). Each case must be considered on its merits and in line with DMBM800040.