DMBM519345 - Debt and return pursuit: PAYE RTI: payments: time to pay

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Time to pay on ETMP

Before agreeing an extended period to pay a debt or amount becoming due, you must consider the guidance contained in DMBM800010 and use the guidance in DMSS8000.

To create or amend a Time to Pay (TTP) arrangement on ETMP, the details required within the ETMP ‘Maintain TTP’ function must be completed. The ‘Maintain TTP’ function is accessible via ‘Maintain Account’. There are three helpcards to assist you but please note that the process to access the Maintain TTP function is as is written here and not as shown on the ETMP helpcards (public folder):

  • ETMP Helpcard 44 Creating a Time to Pay (TTP)
  • ETMP Helpcard 45 Amending a Time to Pay (TTP)
  • ETMP Helpcard 46 Viewing a Time to Pay (TTP).

TTP arrangements for single or combined charges for in-year RTI PAYE underpayments and in-year CIS underpayments can be created on ETMP, providing the:

  • charge or charges exist on ETMP
  • charge or charges haven’t been sent to IDMS
  • charge or charges have the same due date employer/contractor has no other open RTI PAYE/CIS ETMP work item on IDMS.

Specified charges are not appropriate for TTP where the latest return is a specified charge. Where the latest return is an FPS, any specified charge with a due date earlier than the latest FPS, form part of the YTD figure. These specified charges are legally enforceable and can be included in a TTP agreement.

Maintain TTP function

The ETMP ‘Maintain TTP’ button provides a selection screen, called ‘TTP Charges List’, with a list of applicable charges. You should select the charges that you have agreed to include in the TTP arrangement.

Please note that charges not available for selection within the TTP Charges List are:

  • CL1A
  • interest
  • late-payment penalties
  • late-filing penalties
  • advance charges
  • non-RTI.

When TTP details are saved, the status of the TTP information is displayed as either:

  • open
  • sent to IDMS.

TTP status - Open

When the TTP details have not yet been sent to IDMS, the status is displayed as ‘Open’. If the status is ‘Open’, the user can choose to view, amend or delete the TTP information on ETMP.

TTP Status - Sent to IDMS

When the underpayment is sent to IDMS, the TTP status is automatically changed to ‘Sent to IDMS’. The TTP details can still be viewed on ETMP but any changes must be made on IDMS.

Payment frequency

You should only use the following payment frequencies when you agree a time to pay arrangement.

  • Weekly
  • Fortnightly
  • Monthly

Creating Time to Pay on ETMP

Agreeing TTP prior to the due date

ETMP holds the details of the TTP Instalment Arrangement (IA) until the charge, or charges, become overdue. When the charges become overdue, these are passed to IDMS together with the instalment arrangement schedule for IDMS to monitor.

In addition to sending the debt to IDMS along with the TTP information, ETMP:

  • creates a default because payment has not been made in full
  • marks the default as having a TTP against it.

If a charge not yet due is included in the TTP but is not available in the TTP Charges list, set up the TTP on ETMP with the charges available but the note must explicitly state the actual charges and payments agreed. This will allow the Time to Pay Monitoring Office to include the other charges in the IDMS instalment arrangement.

Time to pay letter

When you have been able to set up a TTP on ETMP, you need to send the relevant SEES time to pay arrangement letter and update ETMP Notes.

Time to pay signal on ETMP

Setting the TTP signal manually when the debt is overdue

Where you agree a TTP when the debt is in IDMS, in addition to using function IA to set up the arrangement, you should also set the TTP signal manually in ETMP.

This is because there is no interface from IDMS so ETMP does not know if a TTP is in place.

Once set, ETMP marks the default for that tax period as having a TTP against it.

Un-setting the TTP signal manually when the debt is overdue

Where a TTP is cancelled on IDMS, you must remember to remove the TTP signal so that ETMP can eventually raise further penalties where appropriate.

If you do not remove the signal, a customer may not be charged further penalties in the correct circumstances.

Since IDMS automatically cancels the arrangements, you should ensure you cancel the TTP signal at the first opportunity for review.

How to set and unset the TTP signal in ETMP

To set or unset the signal, you should select ‘Maintain Account’. You are presented with the TTP List screen with the details of the arrangements.

Select [Mark TTP]. You are presented with the TTP Charge List showing details of all the appropriate charges.

To set the signal, you should:

  • check the tick box at the start of the appropriate row
  • click [Save Marked TTP Charges]

To unset the signal, you should:

  • uncheck the tick box at the start of the appropriate row
  • click [Save Marked TTP Charges]

You are presented with a message “Charges successfully updated with TTP status.”

IDMS

IDMS accepts TTP arrangements entered on ETMP. When the charge, or charges, included in the ETMP TTP become overdue, the debt or debts are passed to IDMS together with the instalment arrangement schedule for IDMS to monitor.

NDDS

Direct Debit (DD) has always been the preferred method of payment for any regular time to pay arrangement. However, from August 2015 we will make payment by DD a condition of any new regular payment agreement. There will be a few rare exceptions; for example, where the customer’s bank account will not allow DD.