HMRC Arrears

Whether it’s VAT, PAYE or NI, when cash is tight, paying employees and suppliers is often prioritised over taxes. But it isn’t a long term solution: HMRC has wide powers to recover money it is owed and, because it doesn’t rely on you for ongoing business like a supplier does, it’s ultimately more likely to take recovery action against you.

Time to Pay

Time to pay (TTP) arrangements – agreements with HMRC to repay arrears in instalments over an extended period of time – are a common solution to the problem. If you present HMRC with a realistic proposal and your past payment record is reasonably good, then they may be willing to provide some extra time to bring the arrears up to date.

How we can help? 

Whilst you can approach HMRC direct, having an independent professional do this on your behalf generally has two advantages:

  • If HMRC is contacted by a restructuring professional, they recognise that the company’s situation is serious and that there is a risk of insolvency (which might mean getting no repayment at all) if they are not supportive.
  • HMRC also tends to view financial information and proposals put forward by an independent professional as more credible than those submitted direct by the company.

Because of these benefits, we are usually able to secure much more advantageous TTP terms than a company generally can itself. This alleviates cash flow pressure and provides longer term stability.

Our experts have successfully negotiated Time to Pay agreements on behalf of dozens of clients, frequently achieving deferment periods of over six months – sometimes as much as two years. We link our fees to a successful outcome, which reduces the risk of incurring professional costs for no benefit.

If you have HMRC arrears, get in touch with us to see how we can help. We’ll review your situation and give you straightforward advice on whether a TTP is likely to work for you. If a TTP is not an option, or if it isn’t enough on its own to resolve your issues, we can also help you with other steps to improve your cash flow or handle pressure from creditors.

Oliver Collinge

Director - Leeds

t: +44(0)1134 267 405


News & Insights

Explore our insights for help with managing financial pressures and building resilience in your business.

Read More about Cash flow pressures drives over 100% rise in insolvencies

Cash flow pressures drives over 100% rise in insolvencies

Insolvency figures released today for April 2022* by the Government’s Insolvency Service showed corporate insolvencies more than doubled compared to […]

Read more

Read More about Rainbow Saver Anglia Credit Union Limited – In Administration (“RSACU”)

Rainbow Saver Anglia Credit Union Limited – In Administration (“RSACU”)

James Sleight and Peter Hart of PKF GM have been appointed as Joint Administrators of Rainbow Saver Anglia Credit Union, […]

Read more

Read More about Fifty Shades of Grey – Directors and Bounce Back Loans

Fifty Shades of Grey – Directors and Bounce Back Loans

We need to cast our minds back to 2020 and the first lockdown when the government introduced Bounce Back Loans […]

Read more