“I just need 12 months to pay, but how can I get HMRC to give me time to pay?”


If this is the first time you’ve had tax compliance problems or arrears, and only need a time to pay arrangement that lasts between three to six months there’s a good chance you’ll be granted a time to pay arrangement by HMRC, without having to prepare detailed cash flow proposals.

HMRC will only agree to 100% repayment over a fairly short time period, but that might be all you need, so approach HMRC’s Business Payment Support Service (BPSS) and ask for a time to pay arrangement The sooner you do this the better.

Time to pay arrangements over 6 months can be tricky to get approved, HMRC biggest concern is not how long it takes you to repay the debt but whether or not you are going to continue to accrue debt. HMRC are as concerned about stopping insolvent companies accruing future tax debts and using tax revenue to support short term cash flow as they are about recovering tax arrears. This often frustrates directors who simply don't understand why HMRC have rejected offers to repay over time.

For example if you are going to deregister for taxes then HMRC will probably have no problem with you repaying the debt over 12 months. However if you're going to continue to trade you will probably need to provide evidence in support of your proposal such as a cash flow to show that you can mange to pay the outstanding liability and pay your continuing tax obligations as and when they fall due.

However, it’s important to be honest and prepare thoroughly. Draw up a detailed twelve-month cash flow document to identify what money is coming in and out, plus a business summary. You will need to submit these to HMRC to demonstrate you can afford the payments.

Top Tip:

If you need 12 months or longer not only provide a detailed cash flow but offer to make a weekly DD payment. 4R Business Recovery have successfully negotiated 15 months to repay £56,000 of VAT but the client paid £1,000 weekly by DD.

Even more importantly, make sure this is the strategy you can afford. We always advise our clients to be consistent in their approach. You don’t want to pay 10 months of a time to pay arrangement and then find you can’t continue. If the arrangement fails, HMRC will still seek to wind up the company.

Final Top Tip:

Get professional help now to independently assess your business performance and free up cash flow. There is very little point struggling with a TTP arrangement for six months, with all the stress of cash flow becoming tighter and tighter. Your business may need to be restructured now, and if you work with a Business Turnaround Specialist like 4R we can help restructure the business and keep you in control but significantly reduce the company debts, improve profitability and generate positive cash flow.

Ask 4R Business Recovery to prepare a detailed cash flow and time to pay arrangement on your behalf. We are experienced in working with HMRC – you stand a better chance of securing a time to pay arrangement if the proposal is professional and backed up by us.

If in doubt, call us on 0800 902 0123 for advice. It’s free

We’ve helped hundreds of businesses deal with HMRC debts and tax arrears. If you’ve got a problem with the tax man, we offer a free consultation to talk things through.

Call now on 0800 902 0123 if you want to raise finance to manage a HMRC debt



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