Beta This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Debt Management and Banking Manual

Time To Pay: Setting up Time To Pay: Self Assessment cases

Where the debt is not on IDMS

Where Time To Pay (TTP) is agreed before the due date or before the debt is on IDMS. The arrangement details must be entered in SA.

In order to be able to enter the details on SA

  • there must be a charge on SA, and
  • the payment dates and amounts must be regular.

Where the customer cannot pay regular amounts you should try and negotiate a minimum amount that they will pay. This is so the Direct Debit payment plan can run effectively; see the NDDS005 Create TTP plan helpcard and NDDUG3525.

To enter the details on SA you need to access the ‘Taxpayer Designatory Details’ screen. Then you must:

  • select the ‘signals’ button
  • select the ‘update’ button
  • select the ‘Time to Pay’ button.

Once in this function you can either:

  • set up a new TTP arrangement
  • amend the start date of any current arrangement
  • cancel the most recent TTP arrangement.

If you need to amend an arrangement it is important to make sure that the start and the end dates are correct. If you renegotiate a current TTP arrangement and accept the revised proposals, do not change the start date in SA unless the original arrangement was cancelled. If you inappropriately change the start date of a TTP arrangement in SA, you are likely to cause a late-payment penalty (LPP) or surcharge to be issued inappropriately.

Note: if a TTP date already exists in SA for a previous arrangement that has successfully completed you must never change the start date in SA when setting up or amending future arrangements. If you do it is likely to cause the issue of inappropriate LPPs or surcharges.

Once the TTP details have been entered onto SA they will automatically pass to IDMS to monitor the payment position. In default IDMS will either issue a letter automatically or will pass the case for review.

Debt is on IDMS

When a TTP is agreed and the debt is on IDMS you must use the IA function to set up the arrangement. You must not set up an arrangement in SA if the debt is already on IDMS as the TTP details will not pass to IDMS in these circumstances. Full details on how to use the IDMS IA function are atIDMSUG501400.

One-off payments

In appropriate cases you may agree that the customer can make a one-off payment at a future date to clear their debt. Where the customer approaches you before the LPP/surcharge trigger date and payment in full will be made after the trigger date you will need to enter the following details on the IA function in IDMS or the TTP function in SA to avoid the inappropriate issue of a LPP or surcharge:

  • 1st payment date should be the date when payment is due to be made
  • 1st payment amount should be the total debt less £5
  • regular payment amount should be £5
  • regular payment frequency should be monthly
  • review date should be 10 days from the payment promised date
  • letters should be inhibited.

Inappropriate LPP or surcharge issued

Occasionally we may agree a TTP that meets the conditions for us not to impose a LPP or surcharge but one is issued because the appropriate signals have not be set in SA before the cases are selected for LPP/surcharge issue.

Customer is maintaining the arrangement

Where the customer meets the criteria for us to not impose the LPP or surcharge yet one has been issued, you should informally standover the LPP/surcharge. To do this:

  • use function ‘maintain standovers’
  • enter the UTR
  • select function ‘view statement’
  • enter the statement line of the LPP/surcharge
  • select ‘standovers’
  • select ‘informal standover’.

You will need to monitor the arrangement to make sure that the customer successfully completes the arrangement. If they do so you should follow the guidance below. You will need to keep a manual BF to remind you to cancel the LPP/surcharge at the end of the arrangement.

Customer successfully completes the arrangement

Where the customer has successfully completed the arrangement you will need to cancel the LPP/surcharge.

To cancel an LPP, from the User Role function menu in the ‘Returns’ area:

  • enter the UTR
  • enter the relevant year
  • select the reason for cancellation from the drop-down list
  • enter ‘Y’ in the cancel field
  • select the [update] button.

To ensure the penalty is cancelled, the [update] button must be selected. If the [OK] button is selected, the penalty will not be cancelled.

To cancel a surcharge:

  • use function ‘maintain surcharge’
  • enter the UTR
  • select function ‘view statement’
  • enter the statement line of the surcharge
  • select ‘surcharge’, and
  • select ‘cancel’.

Where the surcharge has been informally stood over you will first need to cancel the informal standover using the ‘maintain standover’ function before you can cancel the surcharge.

LPP/surcharge when TTP is cancelled

If a customer does not make the agreed payment(s) or there is a need to cancel TTP for another reason, the LPP/surcharge concession no longer applies and appropriate LPP/surcharges will be automatically raised as if there had been no TTP arrangement.

When an IA is cancelled on IDMS SA is updated and will raise any appropriate surcharge at the next LPP/surcharge selection date. The LPP/surcharges will be based on the unpaid amount at the relevant LPP/surcharge trigger dates (see DMBM803610).

Where the LLP/surcharge has been informally stood over, you will need to cancel the informal standover using the’maintain standover’ function.

If a cancellation letter has been issued inappropriately or exceptionally a cancellation letter leads to a renegotiated TTP, and you consider the original TTP start date should apply, follow the guidance above headed inappropriate LPP/surcharge issued.