Default Surcharge: Collection of the surcharge: Business Payment Support Service
Since November 2008 taxpayers have not been liable to default surcharge if they contact us before the due date for payment, and we agree to allow time to pay. This is now set in legislation at Section 108 Finance Act 2009.
Where taxpayer’s contact us, either through the Business Payment Support Services (BPSS) or another HMRC office, to arrange Time To Pay (TTP) they will not be in default if the following conditions are met:
- the taxpayer contacts us on or before the due date for payment, and
- a TTP arrangement is agreed, and
- the VAT returns covered by the arrangement are submitted by the due date. (If they are not and the taxpayer is already in the default surcharge regime their surcharge liability period will be extended).
TTPs agreed outside the above conditions neither prevent nor cancel default or liability to surcharge.