HMRC Time To Pay Arrangement Debt Plan

If you have accumulated HMRC Tax Debt of any type whether PAYE, VAT, Corporation, etc., a Time to Pay Arrangement Debt Plan can help you in managing & paying off HMRC Debt smoothly. In this blog, we are going to discuss – HMRC Time to Pay Arrangement Debt Plan, Aim of TTP, Process involved in TTP, and Requirements of the TTP Process.

HMRC Time to Pay (TTP) Arrangement Debt Plan would allow struggling businesses to repay their outstanding corporation tax, PAYE/ NI, VAT and other HMRC liabilities in installments, rather than in one go.

Usually, Time to Pay Arrangements last either 6 or 12 months. However, they may last longer if there is a realistic prospect that the debt will be repaid eventually.

Without any further ado, let’s dive right into the details that can help your business manage their taxes the right way.

What we aim to do:

HMRC liabilities will not simply disappear overnight but seeking a Time to Pay arrangement has its own added advantages.

We will be spreading out the repayment of debt over a period of time, rather than repaying all at once. This will improve cash flow and ensure that affected businesses have money to pay on other outgoings such as rent, wages and suppliers. We aim to carefully examine business management accounts and would appreciate any source of funds the business is seeking to introduce a proposal.

A debt solution company must do this to avoid debt recovery action in court. Additionally, if the business is planning for shareholders to loan to the company then confirm your plans and source of funds i.e. savings ,loan arrangement or help from family /friends.

Opting for a Time to Pay Arrangement Debt Plan will demonstrate a willingness to repay liabilities. This helps businesses remain on good terms with HMRC.

Proactively seeking Time to Pay will decrease the likelihood of HMRC taking enforcement action against business/company.

hmrc time to pay arrangement debt plan


Our process of a Time To Pay Arrangement Debt Plan:

Assess the situation

It is important to explore the financial situation of the business and decipher what will be suitable for your business. We aim to analyse your company’s management accounts, forecasts, previous accounts and sustainable business activities. We can only be optimistic when we know that a debt company’s financial accounts and reporting would be helpful in getting HMRC to agree on our detailed plan towards TTP.

Repayment proposal

Once we have fully assessed the company’s business finances and recent correspondence with HMRC and then we will devise a repayment proposal to be put forward to HMRC. Included within the proposal would be details of the circumstances surrounding your cash flow difficulties including facts from you that how and when HMRC payment was missed and reasons for this difficulty.


Our staff have years of experience working with HMRC and we will utilise the strong relationships built over time. An experienced consultant will negotiate a structured repayment plan on behalf of your business. It will demonstrate to HMRC that you fully intend on repaying your debt. The proposed repayment plan will outline the suggested repayment amounts and terms requested.
You must ask for available support from your HP provider , it is likely they would offer you up to six months payment holiday.
If they do, it can really help you to deal with some of your debt problems during Covid – 19

Arrangement Debt Plan Starts

If HMRC accepts the proposal, the Time to pay arrangement will commence. The TTP Arrangement Debt Plan will conclude once all repayments have been made. Additionally, any interest and fee/charges will have to be paid.
You must ask for available support from your HP provider , it is likely they would offer you up to six months payment holiday.
If they do, it can really help you to deal with some of your debt problems during Covid – 19

Alternative solutions

Time to Pay Arrangements Plan can only be used to relieve HMRC specific debts. If you have debts to other parties, or you have had a TTP, which has failed, other debt-relief options may be more suitable for you. There can be a repayment deadline to be met from HMRC, We want to ensure that the client is aware of alternative solutions.

Company Recovery

If you are looking to pay off your debt while continuing to trade, there are alternative arrangements. You can apply for a Company Voluntary Arrangement (CVA), in which you can stay in control of the company, continuing to trade while you repay your debts. Alternatively, if your business would benefit more from restructuring, company administration may be a suitable solution. We can discuss fact-finding and our reports with CVA advisors in advance.

Company Closure

Sometimes, the company’s debt can be so substantial that it is not possible to continue trading, and you may be better off closing the company through a Creditors Voluntary Liquidation (CVL). Doing so would involve selling off company assets before creditors force it into compulsory liquidation.

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 is a Cert DR qualified debt advisor. I write exclusively about debt management & related fields to help people understand & manage their debts & credit problems. i am also a managing principal of an FCA regulated debt management firm “Acme Credit Consultants Ltd” that offers suitable debt solutions to individuals and businesses in debt problems.