A Time to Pay arrangement allows agreed tax arrears to be paid by instalments. HMRC assesses the circumstances and affordability. It is not an automatic entitlement or a guarantee that every proposed term will be accepted.
The aim is a payment schedule the business can maintain. An unrealistic promise can lead to a further default and renewed collection pressure.
Use a forecast showing when customer receipts arrive and when essential bills become due. Allow for quieter periods, finance repayments and upcoming tax. Separate confirmed income from possible sales or asset disposals.
Review whether the company can reduce the outstanding balance and explain how the debt arose. Where past arrangements exist, show their terms and payment history.
Our initial discussion can help establish the information required and whether wider insolvency advice is necessary. A paid engagement should have a clear written scope and fee basis.
Monitor cash against the forecast and continue meeting new liabilities. If the business cannot maintain the arrangement, raise the issue promptly rather than waiting for several payments to be missed.
A Time to Pay agreement is not a substitute for a viability review. If normal trading continually creates a deficit, operational changes or a different route may be needed.
If a deadline is approaching, tell us the date when you call.
The term depends on HMRC’s assessment of the individual case. A specific number of months or years cannot be guaranteed.
Do not assume an arrangement removes interest or penalties. Check the treatment of the relevant tax and the terms agreed with HMRC.
Yes. You may be able to arrange payment directly with HMRC, including through an online service where eligible.
Further reading: official GOV.UK guidance. General information; procedures and advice depend on your circumstances and jurisdiction.