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HMRC internal manual

Debt Management and Banking Manual

Time To Pay: agreeing or rejecting Time To Pay: rejecting Time To Pay

Rejecting cases

Time to pay (TTP) requests can be rejected for a number of reasons. Any TTP request that does not meet the conditions of TTP will be rejected. If after obtaining the basic debt negotiating information, you discover that the customer can pay or that their request is unacceptable you should look to reject the request at that point rather than continue to collect additional evidence.

Where you reject a request for TTP you should clearly explain the reasons why you are rejecting the request and the enforcement action that we will take if they do not pay in full and note the records accordingly.

If you are rejecting a proposal based on the evidence gathered or are unable to agree TTP due to authorisation levels, you must try and obtain an interim payment today and advise the customer they will be contacted again as soon as possible. The customer should be advised to make any possible payments in the meantime as these will be accepted without prejudice. This would not constitute a TTP arrangement and we should not set up a Direct Debit in these circumstances.

Generally, TTP requests can and should be rejected over the phone, clearly explaining the reasons for rejection and making appropriate notes on IDMS. You should issue the appropriate enforcement warning letter. Only exceptionally should you write to the customer; for example, where it is not possible or appropriate to contact the customer by phone.

Debts below £750,000

The vast majority of unacceptable TTP request will be rejected over the phone after discussing the proposals with the customer. For debts below £750,000, the caseworker (any grade) can make the decision to reject the request.

If you are unsure about a request you should consult with a more senior grade for their opinion.

Debts of £750,000 or over

Where a TTP request is made for a debt of £750,000 or over, the decision to reject the proposals must be made by an HO or SO. The caseworker should pass any supporting evidence (such as a completed corporate debt questionnaire and or/additional evidence A-E) to the HO or SO and summarise the details of the case on a case summary form.

There is no need for the HO or SO to refer the case to the accountants for them to review.

You must send an email to Sheamie Donnelly (DMB) providing details of the case and the reasons for rejection.

However, if you are rejecting TTP and warning of insolvency action you must make sure that letters are issued correctly and in line with DMBM685500.

Rejecting Time to Pay after an Independent Business Review (IBR)

If we have asked a business to produce an IBR in support of their TTP request and they have done so, the decision to reject TTP should be made at the same grade that would be responsible for authorising the decision. For details of authority grades, see DMBM803510.

You will also need to send details to Specialist Investigations (SI). You should send an email to Grant English (RIS Campaigns). The subject of the email should be ‘IBR TTP rejection’ and should include the:

  • reference numbers and amounts outstanding
  • reasons for rejection.