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HMRC internal manual

Debt Management and Banking Manual

Time To Pay: Time To Pay requests: repayments due from HMRC

As a principle we shouldn’t make repayments to a customer whilst allowing a Time To Pay (TTP).

S130 FA2008 gives HMRC the power to set off amounts that are due to be repaid to a person against debts owed to HMRC by that person. For details see DMBM700010.

When discussing TTP with the customer, you should ask if they are due a repayment from HMRC in the timescale it will take them to clear the debt. This is particularly important in large value TTP cases where the customer may be a VAT repayment trader, or due to receive a CT or VAT repayment. You should explain to the customer that any future repayment of tax or duty that they become entitled to will, whenever possible, be set off against their debt.

Where exceptionally you agreed TTP and VAT repayments are not to be set off due to extenuating circumstances (having first agreed this with your manager), you must make this clear in IDMS notes, including the reason, and email the VAT SPOC immediately at VAT, CAMPAIGN SPOC (DMB).

In many cases HMRC computer systems will automatically set-off repayments when the debt relates to the same tax that is due to be repaid. For example, a repayment due from Self Assessment Income Tax would be automatically set-off against a Self Assessment Income Tax debt on the Self Assessment computer system.

Where the repayment is due from a different tax or duty to the one that is owed then the repayment would have to be manually set-off against the debt.

Repayment due

When you discover that a repayment is going to be due during the arrangement, you should find out:

  • what the repayment is for
  • when the repayment is due.

Once you know these details you should consider if you should set-off the repayment, see DMBM700040, and DMBM700060.

Where it is appropriate to set-off the repayment against the debt you follow the appropriate guidance at DMBM700070, DMBM700080 and DMBM700090.

DMTC staff only

If the customer indicates that they may be due a future repayment during the life of a TTP arrangement, DMTC should note the details but set the TTP up for the whole of the debt. They should advise the customer that any repayment becoming due during the life of the TTP arrangement may be set against the debt.