HMRC internal manual

Debt Management and Banking Manual

Time To Pay: monitoring the arrangement: cancelling Time To Pay

You should check the other guidance available on GOV.UK from HMRC as Brexit updates to those pages are being prioritised before manuals.

HMRC is bound by the terms of arrangements that we enter into. However, we are entitled to withdraw and cancel any arrangement if:

  • new facts come to light that don’t support the Time To Pay (TTP)
  • the customer has misled us or has been untruthful
  • the customer defaults on the arrangement
  • the customer does not adhere to any of the conditions of the arrangement
  • any other factors come to light where it becomes apparent that tax is at risk
  • a customer makes a claim for Universal Credit (in this case, any existing Tax Credit TTPs will be cancelled and all tax credits debt for each customer will be transferred to the DWP including any debt remaining from a cancelled TTP); the DWP will advise of the rate of recovery and any discussions on this will need to be had with them.

Prior to cancelling a TTP arrangement we must issue a reminder letter to the customer to advise them that they have defaulted on their arrangement and give them an opportunity to bring it up-to-date.

Cancelling TTP on IDMS

Fully automated cases

Where the customer has not brought the arrangement up to date after receiving a reminder letter then IDMS will automatically issue a cancellation letter and move the work items to the chosen enforcement worklist. IDMS will be noted with an action history note showing that an IDMS9 cancellation letter has been issued.

If you want to cancel a fully automated IA on IDMS and the payments are up to date (for instance, where a return is outstanding or another debt has arisen) you should click on the IA toolbar button:

  • select ‘Arrangement’ from the menu
  • select ‘Cancel - No letter’.

You will then need to set the appropriate next action code to issue a letter or manually issue a TTP40 ‘TTP cancellation letter’ from SEES.

For further details see IDMSUG501440.

Time To Pay Monitoring Office

Where IDMS has cancelled an IA the Taxpayer Record and Work Item(s) will either be retained at the TTPMO or transferred immediately to the appropriate Field Force Office.

Where enforcement action is now appropriate the Taxpayer record will need to be transferred to the relevant HoD hopper OU and the Work Items transferred to the relevant enforcement OU.

Monitor only cases

In monitor only cases no IDMS9 will have been issued. Where you want to cancel these cases you should check on the IA status by clicking on the IA toolbar. If the IA status is open you should

  • select ‘Arrangement’ from the menu
  • select ‘Cancel - Issue letter’.

If the instalment arrangement is being cancelled for another reason beyond non-payment of amounts in the arrangement (for example, a new debt has arisen) you will need to close the IA with no letter and then set the appropriate next action code to issue a letter or manually issue a TTP40 ‘TTP cancellation letter’ from SEES.

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Direct Debit cases

In some instances you may get a case where the customer is making payment by direct debit, but has failed to meet other conditions of the TTP and it is appropriate to cancel the arrangement.

Where we have set up a direct debit payment plan with the customer and you are cancelling the TTP arrangement you should cancel the appropriate TTP payment plan using NDDS and follow the steps at NDDUG3575.