HMRC Time To Pay Arrangement Debt Plan

HMRC liabilities won’t vanish overnight, but opting for a Time to Pay arrangement offers several advantages. This plan involves spreading out debt repayments over time rather than paying in one lump sum. By doing so, cash flow improves, ensuring that businesses can meet other financial obligations such as rent, payroll, and suppliers. We carefully review business management accounts and appreciate any proposed sources of funds.

This strategy is crucial for debt solution companies aiming to avoid legal debt recovery proceedings. If your business plans to have shareholders lend money, please confirm the details and the source of funds—whether from savings, loan agreements, or assistance from family and friends.

Choosing a Time to Pay Arrangement Debt Plan signals a commitment to settling liabilities, fostering a positive relationship with HMRC. Proactively pursuing this option reduces the risk of HMRC resorting to enforcement actions against your business. 

hmrc time to pay arrangement debt plan

Our process of a Time To Pay Arrangement Debt Plan:

Assessing the Situation 

Exploring your business’s financial standing is crucial, including a deep dive into management accounts, forecasts, past financial records, and sustainable practices. Understanding your debt company’s financial reports can be pivotal in gaining HMRC’s approval for our comprehensive plan towards Time to Pay (TTP).

Repayment Proposal 

After a thorough assessment of your business’s finances and recent interactions with HMRC, we will craft a repayment proposal for HMRC’s consideration. This proposal will detail the circumstances leading to your cash flow challenges, including specifics on missed HMRC payments and the reasons behind them.


With our team’s extensive experience dealing with HMRC, we leverage our established relationships to negotiate a structured repayment plan on your behalf. This plan will showcase your commitment to clearing your debt, specifying repayment amounts and terms.

Commencement of Debt Plan

Upon HMRC’s acceptance of the proposal, the Time to Pay arrangement begins, concluding once all payments, including interest and fees, are settled.

Exploring Alternatives 

If TTP isn’t viable due to debts to other parties or previous unsuccessful TTP attempts, we explore alternative debt relief options tailored to your situation.

Business Recovery 

For businesses aiming to settle debts while remaining operational, options like Company Voluntary Arrangements (CVA) or company administration offer structured paths forward, preserving control or restructuring as needed.

Closure Considerations 

In cases where debt overwhelms the company’s ability to sustain operations, a Creditors Voluntary Liquidation (CVL) may be recommended, involving asset liquidation to settle debts before compulsory liquidation occurs.

What does the Time To Pay Arrangement Debt Plan Require?

Introduction to case summary and detailed repayment proposal plan are normally submitted to HMRC debt management office with the scope of following areas where necessary:

  1. Assessment of HMRC tax debt liability report
  2. Brief company structure, business opportunities, sustainability of business and our client’s willingness towards debt repayment
  3. Short term cash flow issue
  4. Reasons for cash flow issues
  5. Introduction of Director Loan as per shareholder and company official meet and approval
  6. Our internal report checks on the company (Western Thermal) about the positive potential to operate
  7. Management accounts -Why are management accounts are a reflection of sustainable cash flow for the improvement of business activities
  8. Additional Loan options to pay off HMRC tax debt liability including working capital loan
  9. Initial offer of loan by company director, payable to before court hearing date or entry into official gazette. (If necessary)
  10. TTP repayment offer and calculation for ongoing repayments including fee and charges for the last repayment
  11. Our recommendation summary including priority debt acknowledgement
  12. Cash flow forecast and repayment sustainability
  13. Alternative debt solution options for our client and reason why report towards TTP

There is a requirement to work/prepare on cash flow forecasts for the next 12 months, management of accounts, historical accounts copies, company background, business activities and business sustainability report.

For further information please call our office on 0208 568 9687 for a free and confidential personal appointment.

We hope that this little piece of information on HMRC Time to Pay Arrangement Debt Plan was helpful to you. We covered all the information from a simple introduction to our aim regarding this scheme, the process that needs to follow for coming up with a workable plan and all the requirements for a Time to Pay Arrangement Debt Plan.

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  • Rajnish Tyagi

    Rajnish Tyagi possesses certification as a qualified debt advisor and specializes in writing about debt management and related topics. His aim is to assist individuals in comprehending and effectively managing their debts and credit issues. Additionally, Rajnish Tyagi holds the position of managing principal at "Acme Credit Consultants Ltd," an FCA regulated firm that provides tailored debt solutions to both individuals and businesses facing financial challenges.

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