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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
, see all updates

Time To Pay: partnership Time To Pay requests: Time To Pay agreed or refused

TTP agreed

All Time To Pay (TTP) agreements must be authorised at the correct grade (see DMBM803510).

Debt on IDMS

You must use IDMS function IA to set up the arrangements for each partner (see IDMSUG501400). If the arrangement covers an SA debt that is not yet due, but will become due during the course of the arrangement you must create a pseudo work item before you use the IA function (see IDMSUG501415).

Liability on SA and no debt on IDMS

When the liability is on SA but there is no work item on IDMS you must use the ‘MAINTAIN TIME TO PAY’ function on SA to enter the details of the arrangement. To access this function select the ‘AMEND TAXPAYER SIGNALS FUNCTION’ and select the TTP button.

You must ensure that arrangements are set up correctly and start and end dates are entered correctly to avoid the inappropriate issue of surcharges and late payment penalties. For additional information on this see SA surcharge helpcard (PDF 18KB).

Other HMRC debts

Where the TTP agreement also includes other HMRC debts, do not cross reference and link these to the partners’ SA debts. If there is more than one non-SA debt, these should be cross referenced and linked. You must then use the IA function to set up the arrangement on IDMS and record a note detailing that this is a partnership arrangement and that includes the partnership UTR.

TTP agreement letters

You must issue a TTP agreement letter to the partnership and each partner.

A SEES TTP18 letter should be issued to the representative of the partnership. This letter details the Self Assessment liability that is covered by the arrangement and explains the conditions of the arrangement and confirms that if the arrangement breaks down we will pursue each partner for the debt.

Where possible an IDMS7 should be issued to each partner. Where it is not possible to issue an IDMS 7 e.g. where TTP is agreed before the case is in IDMS then a SEES TTP10 should be issued to each individual partner.

Joint debts

Where the arrangement includes other HMRC debts you must issue a separate TTP agreement for these debts. A separate letter must be issued as the partnership debts and those of the individual partners cannot be enforced together and if the arrangement is cancelled the process for cancelling the individual partners’ arrangements must be separate to the cancellation of the arrangement for partnership debts.

TTP refused

Where TTP is not appropriate you should inform the representative of the reasons why we are unable to agree TTP, and that each partner’s debt will be managed individually.

If individual partners subsequently make a request for TTP then these should be considered on their merits. You must not refuse a TTP solely on the basis that a partnership request was refused, but you should look at the reasons why the partnership request was refused and consider these during your discussions.