Check If You Qualify

What is an HMRC Time to Pay arrangement?

Reviewed 12th February 2024

Can I get more time to pay my company tax debts?

If you’re struggling with company tax debts, you can make a Time to Pay arrangement with HMRC to repay what you owe over a typical period of six months. It gives you more time to pay your tax bill without having to worry about pressure or legal action from HMRC.

How does an HMRC Time to Pay arrangement work?

A Time to Pay (TTP) arrangement allows you to repay all your company tax arrears - VAT, Corporation Tax and PAYE - in monthly instalments over a period of up to 12 months. You can also include any penalties or surcharges you have received in the arrangement. 

Further late payment penalties or surcharges will not usually be added to your tax bill once you have agreed to a Time to Pay arrangement. However, interest will continue to accrue and be included in your monthly repayments. 

How do I make a Time to Pay arrangement with HMRC?

If you’re facing a cash flow shortfall and are concerned about your ability to pay taxes such as VAT, PAYE and Corporation Tax, the best time to contact HMRC is before the tax is due. That will give you the best chance of making a TTP arrangement and reduce the likelihood that penalties and surcharges will be added to your bill. 

You can contact HMRC to negotiate a Time to Pay arrangement yourself, although professional support can be beneficial. HMRC will ask you questions to understand your financial position and determine whether to give you more time to pay. It may ask:

After your initial interview, HMRC will usually ask you to produce a repayment proposal in writing and provide evidence of your company’s cash flow position. You should be honest about the amount you can realistically afford, as HMRC will not offer you a repayment plan if it doesn’t think you can stick to it. Bear in mind that as well as the monthly instalments, you will also be expected to pay your ongoing tax bills when they become due. 

HMRC will want to see a repayment proposal that you can afford but also clears the debt as quickly as possible. You may be able to shorten or lengthen the arrangement once it has been agreed if the company’s financial position changes. 

Why might my company be refused a Time to Pay arrangement?

HMRC will consider several factors when deciding whether to give you more time to pay. Firstly, it will look at your company’s financial viability. If your business is experiencing a temporary cash-flow problem and you’ve done everything you can to keep up with your tax affairs, it will usually try to help.   

It will also look at how well you have conducted your tax affairs in the past. It will help if you have filed returns and paid your bills on time, but if your company has a less-than-perfect compliance history it won’t necessarily rule you out.

What happens if I default on a Time to Pay arrangement?

Once it’s in place, HMRC can only cancel a Time to Pay arrangement under exceptional circumstances. However, if you do not stick to the agreement or fail to make ongoing tax payments when they’re due, all that changes. HMRC can then cancel the arrangement and add on a penalty as well.

This is a situation you want to avoid as it can escalate quickly. The worst-case scenario is that HMRC issues you with a Winding Up Petition to force your company into liquidation.    

Do you need more time to pay?

If you’re struggling to pay a tax bill or think you will in the future, contact HMRC at your earliest opportunity or get in touch with our team for specialist advice. Our business debt advisors have vast experience dealing with HMRC and can negotiate a Time to Pay arrangement on your behalf.

Debt Report

Get your instant Debt Report today

Find out which debt solution is best for you

Our debt report is completely easy to use and is a great starting point for anyone with over £5000 of debts looking to take control of their debt issues. By providing us with details of your incomings and outgoings we can suggest the most appropriate way forward for you.

Get Your Report
Debt Report V2

Related News

Debt Levels Soaring across Scotland, New Figures Show Debt Level Rising

Debt Levels Soaring across Scotland, New Figures Show

Levels of unsecured debt in Scotland increased dramatically during 2022 as the cost of living crisis took its toll on household finances.

Nearly Half a Million Scots Facing ‘Profound Financial Hardship’ Financial Hardship

Nearly Half a Million Scots Facing ‘Profound Financial Hardship’

Close to half a million Scots are in a position of profound financial hardship, according to a new set of figures.

Scots with Disabilities Urged to Check Eligibility for New Benefits Scottish Man In Wheelchair

Scots with Disabilities Urged to Check Eligibility for New Benefits

Disabled people in Scotland are being urged by the government to check whether they might be eligible for benefits that could help make their life a little easier.

map pin

Glasgow

2 Bothwell Street, Glasgow, G2 6LU

The Team

Meet our qualified Scottish based team

100% Confidential Advice

Chelsea Williams David Tannock Sharon McDougall Square

We'll give you a call

Our Scottish based team can help advise you on your debt problems.

Here at Scotland Debt Solutions we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See our Privacy Policy.

The team

Meet our qualified Scottish based team

100% Confidential advice

Chelsea Williams Thomas Mckay Kelly Jones Tannock1

Our Insolvency Practitioners are regulated by ICAS or the IPA and our firm is authorised and regulated by the Financial Conduct Authority

Fees and Information: There are fees associated with our services. These will be fully explained before entering into any of the personal debt solutions referred to on this website. Full details of our fees and how these are charged are fully explained to you prior to you committing to any particular service.

ICAS Insolvency Practitioners