Managed payment plans
From April 2011 taxpayers will be allowed to agree Managed Payment Plans (MPP) to spread their income tax or corporation tax payments. The plans will spread the payments equally over a period which spans the normal due dates for payment of the tax.
The use of the MPP will be voluntary and taxpayers will be protected from the normal interest and penalties consequences of paying late. HMRC will have the power to refuse taxpayers the ability to use a MPP.
HMRC have also confirmed that initially payment will only be possible by direct debit. However, this policy will be kept under review and going forward there may be other electronic payment options made available.
The launch date of April 2011 has been set to allow HMRC time to update its computer systems to cope with the change and to provide taxpayers with sufficient notice ahead of the scheme’s introduction.