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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
, see all updates

Time To Pay: Time To Pay requests: debts less than £250,000

Debts below £250,000

Where the customer advises you that they cannot pay in full you must establish:

  • what their total HMRC debt is (all HoDs)
  • why they can’t pay in full
  • how much they can pay now
  • if they expect to receive any payments from HMRC
  • what their proposals are.

Where the customer is requesting three months or less to clear their debt, you should use your Professional Debt Recovery Skills to decide whether TTP is appropriate. Where the customer advises you that they cannot clear the debt in three months or less then you must gather the information below. This is the minimum information that you are required to gather. If the circumstances of the request warrant you gathering additional information then you must make sure that you collect the amount of information required for you to properly review the request.

If at any point during discussions you believe that TTP is not appropriate, because the customer does not meet the required conditions, you must refuse their request and explain why they cannot have TTP.

Individual Debts

Where the debt is owed by an individual; for example, SA cases, deregistered VAT and ceased PAYE cases (see DMBM802100 for more information on ceased cases), then you should get the following information below based on the timescale requested.

If the caseworker negotiating with the customer is not the authorising officer (see DMBM803510) then you should summarise the details of the request on a Case Summary Form (Word 70KB). This will highlight the pertinent information to help the decision maker.

DMTC only

DMTC do not currently use the Case Summary Form. If the DMTC collector negotiating with the customer is not the authorising officer (see DMBM803510) then they should discuss the details of the request with the authorising officer and note the outcome and authorisation in their notes.

Above three months

You need to ask questions based on the Individual Debt Negotiating Framework (PDF 21KB) to help you decide whether TTP is appropriate.

TTP arrangements exceeding 12 months are exceptional and you must be satisfied that any arrangement exceeding 12 months is necessary and that the customer is able to adhere to the arrangement and its terms. In some cases where over 12 months is required you may need more information than on the Debt Pursuit Negotiating Framework. If this is the case you should obtain the details on the 36A1 Income and expenditure form (found on SEES Forms and Letters).

Business Debts

Where VAT, CT and PAYE debts are owed, you should gather the following information based on the timescale required.

If the caseworker negotiating with the customer is not the authorising officer (see DMBM803510) then you should summarise the details of the request on a Case Summary Form (Word 28KB). This will highlight the pertinent information to help the decision maker.

DMTC only

DMTC do not currently use the Case Summary Form. If the DMTC collector negotiating with the customer is not the authorising officer (see DMBM803510) then they should discuss the details of the request with the authorising officer and note the outcome and authorisation in their notes.

Above three months and up to 12 months

You need to ask questions based on the Business Debt Negotiating Framework (PDF 21KB) to help you decide whether TTP is appropriate.

Over 12 months

You need to complete a Corporate Debt Questionnaire (Word 166KB) to help assess the customer’s ability to pay and their long term viability. TTP arrangements exceeding 12 months are exceptional and you we must be satisfied that any arrangement exceeding 12 months is necessary and that the customer is able to adhere to the arrangement and its terms.

All TTP agreements must be authorised at the correct authorisation grade, see DMBM803510.

DMTC only

DMTC collectors currently do not complete Corporate Debt Questionnaires. Where TTP proposals exceed 12 months they will:

  • obtain the largest possible payment immediately
  • note details of the request on the IDMS action history notes
  • wrap the case or set a next action BF code for the campaign DTO to review the case
  • advise the caller that we will contact them to discuss their request and that they should continue to make payments.