Skip to main content

Duff & Phelps


Posted: 10 Mar, 2020

When facing financial pressures, and where cash is a precious commodity, a Time to Pay (TTP) arrangement with HM Revenue & Customs (HMRC) can be a key component of a successful turnaround plan that preserves your clients’ futures and safeguards jobs.
 
HMRC is committed to supporting businesses via TTP arrangements that can demonstrate viability and present a strong case for support. A successful TTP arrangement is part of a longer-term solution. It is important not to erode HMRC’s appetite to support by taking short-term payment plans that merely defer issues without solving the overall problem. In our experience, HMRC favorably views requests where multi-stakeholder engagement is evident and where HMRC has not been the first port of call while other options remain unexplored.
 
The impending implementation of the Finance Bill 2019 will result in the reintroduction of the Crown Preference in insolvency proceedings. With this, we anticipate that funders, particularly asset-based lenders (ABL) providing funding secured against floating charge assets, will increase monitoring of their clients’ HMRC liabilities and compliance. Where companies are currently funded by any form of ABL facility, and especially if they benefit from either a high invoice finance advance rate (85% plus), stock facility or cash flow loan, we recommend undertaking an urgent review of their facilities.
 

How Can Duff & Phelps Help?

 

Duff & Phelps has secured TTP arrangements for over 70 companies since 2018, helping to safeguard their viability and preserving more than 5,000 jobs.

Our Tax Arrears Solutions team can work with companies, their funders and other stakeholders to determine whether a TTP arrangement is the right course of action and, if so, can assist in providing a company with an increased chance of achieving the required result with HMRC.

Our Tax Arrears Solutions team work closely with specialists from Duff & Phelps’ Operational Improvement team. This dynamic complements a company’s overall restructuring program, as we can assist in quickly assessing and resolving any cash flow difficulties on a workable basis with a full understanding of the operation of any borrowing facilities. The team also work closely with lenders to facilitate distressed refinances, with a TTP arrangement often providing the additional headroom needed for borderline deals to complete.

If lenders’ clients are considering approaching HMRC to defer a tax payment, regardless of the type and size of the debt, we can immediately help to assess the position and quickly determine the options available. We offer a free initial non-obligation consultation and as a result of our high success rates we can work with an element of our fees contingent on success. We can advise on any likely adverse consequences of the HMRC rule changes and what actions can be taken to mitigate their impact, including changes to facility types.

 

Contacts  - Michael Bills   Allan Graham  Mike Parsons

Website link 


Back to News

TMA news

26 May, 2020

Colliers Webinar Series | Part 1: Hotels & Hospitality. The Road Out of Lockdown to a New Norm

In our most recent webinar, kindly hosted by...

18 May, 2020

How Can Businesses Prepare for Life After Lockdown?

Just three months ago no one had heard of...

13 May, 2020

The Shape of Things to Come

Maurice addressed an audience that topped out...

Sponsor news

26 May, 2020

CORPORATE INSOLVENCY AND GOVERNANCE BILL – MAJOR INSOLVENCY REFORMS PROPOSED

The Government on 20 May 2020 published the Corporate Insolvency and Governance Bill, which...

14 May, 2020

BREAL Zeta appoints Kevin Yates as Risk Director in latest high profile move

BREAL Zeta, the UK asset based lending specialist, today announces the appointment of Kevin Yates...

Tweets

TMA UK @UK_TMA · 3 months ago

Did you hear? Our CEO, Jenny Oldfield, has been appointed as a @UK_TMA director! Congratulations Jenny! pic.twitter.com/o1QhEV65uU

TMA UK @UK_TMA · 2 months ago

Our events are held across the UK, featuring well known speakers from all areas of the Turnaround Community. Not ye… twitter.com/i/web/status/1…

JCR

April 2020