Companies face winding up after just one TTP default
Taxman latest policy reveals to wind up companies that breach Time to Pay agreements with no exceptions
WINDING UP petitions could be made against businesses that default just once on their Time to Pay (TTP) arrangements, Accountancy Age has learned.
According to leaked information from the Worthing Debt Enforcement, a government body which supervises all HM Revenue & Customs debt, any TTP agreement that is breached will face an automatic winding up petition from the taxman.
Once the petition has been made HMRC will not re-negotiate the terms of the TTP. The business will be faced with payment in full or an insolvency procedure such as liquidation.
Assets are frozen and can’t be used to raise finance during the winding up petition process, said Harrisons partner Tony Murphy.
“This goes against previous government announcements it wants to encourage a rescue culture,” he added.
A spokesman from HMRC said:
