Key Takeaways
- A HMRC Time to Pay arrangement enables individuals or businesses to spread tax payments over an agreed period, helping to manage cash flow and avoid enforcement action.
- Taking prompt action is vital; delaying contact with HMRC about tax arrears increases the risk of court proceedings, penalties, and extra interest.
- Solicitors experienced in HMRC Time to Pay can negotiate more realistic payment plans, improving your approval chances and reducing stress.
- You’ll need full financial disclosure, demonstrating income, expenses, assets, and liabilities when applying for a Time to Pay agreement.
- Defaulting on an HMRC payment plan allows HMRC to cancel the arrangement and start enforcement, including asset seizure and petitions to wind up a company.
- Trustpilot rates us Excellent, with more than 130 five-star reviews and a 4.9/5 satisfaction score.
- Each Time to Pay arrangement is assessed case by case, but the best results follow when you act before HMRC starts legal action or issues a statutory demand.
- Using a solicitor for HMRC Time to Pay negotiations safeguards your rights, clarifies your legal options, and provides robust support if HMRC rejects your proposal.
- If you are concerned about tax debts, our solicitors can rapidly assess your circumstances, compile a strong application, and negotiate with HMRC on your behalf.
- Ignoring HMRC tax debts can seriously damage your credit rating, trigger costly litigation, and put your personal or business assets at real risk.
Call us for a Free Consultation on 0207 459 4037 or request advice online today.
How Can a Solicitor Help Negotiate an HMRC Time to Pay Arrangement in the UK?
Receiving an HMRC tax bill you cannot immediately pay can create huge pressure for any business or individual. Ignoring the problem puts assets and your reputation at risk, yet many people do not realise that HMRC is able to agree a Time to Pay (TTP) arrangement—particularly when your proposal is well-documented and professionally presented.
Our solicitors have years of experience negotiating with HMRC, tailoring affordable repayment plans, and significantly increasing clients’ chances of acceptance. We manage every step, from evidence gathering and application to negotiation, ensuring the whole process remains firmly in your control.
If you need urgent support to open negotiations or are unsure how to meet HMRC’s requirements, our expert tax dispute team is ready to help. Book a free consultation or call 0207 459 4037 for immediate guidance.
What Is an HMRC Time to Pay Arrangement and Who Can Use One?
An HMRC Time to Pay arrangement allows you to settle tax debts—including Income Tax, Corporation Tax, VAT, PAYE, and National Insurance—over fixed monthly instalments, instead of a single lump sum by the due date.
To be eligible, you must be able to show:
- That you owe tax, either personally or as a business
- That you are experiencing short-term cash flow or financial difficulty
- A credible plan to pay the debt in full over an agreed period, typically backed by sound financial records
Time to Pay arrangements are used by sole traders, self-employed professionals, directors, limited companies of every size, and contractors. You will need to convince HMRC that your overall finances or business remain viable if given extra breathing space. Simply seeking to delay payment without a genuine reason is unlikely to succeed.
A solicitor’s early involvement ensures your proposal is tailored and credible—bringing real peace of mind in difficult circumstances.
Can a Solicitor Help Negotiate a Time to Pay Plan With HMRC?
Negotiating with HMRC can feel daunting and the smallest misstep may result in a rejected application, surcharges, or threats of legal action. One of our specialist tax solicitors can protect your position by ensuring your proposal is meticulously prepared, clearly evidenced, and aligned with both legal duties and HMRC policy.
Whether reviewing your tax position for compliance gaps, structuring your evidence, or negotiating directly with HMRC, our solicitors are focused on making a persuasive case. We also ensure you are protected from insolvency escalation if talks stall or further demands are issued.
If you owe significant tax, run a business with jobs at risk, or fear potential director disqualification, instructing our team early can make a crucial difference.
How Does the HMRC Time to Pay Application Process Work?
The steps to securing a TTP arrangement vary by complexity and value of the debt. Straightforward personal and business cases can start over the phone, while high-value or complex debts benefit significantly from formal representations by experienced solicitors.
A typical application involves:
- Listing all overdue tax liabilities (by type, amount, and reference).
- Collecting and presenting financial documents (bank statements, cash flow projections, statements of liability).
- Drafting a proposal outlining how and over what period the debt will be repaid.
- Contacting HMRC by phone or written representation (solicitor support can handle this directly).
- Responding to queries and, if terms are agreed, receiving formal confirmation with payment instructions.
Sticking exactly to your agreed payments is vital. Even minor delays or missed instalments put the arrangement—and your business—at risk.
What Evidence and Information Will HMRC Need for a Time to Pay Agreement?
Applications must be supported by transparent, accurate financial evidence. HMRC routinely seeks:
- 3 to 6 months’ business bank statements (to verify your payment forecasts)
- Detailed records of income, turnover, and expenditure
- Description and value of any business or personal assets
- Up-to-date liabilities and existing repayment arrangements with other creditors
- Cash flow forecasts month by month for the proposed payment term
- Evidence of attempts to reduce outgoings (such as cost-cutting or payment holidays)
- Disclosure of any previous Time to Pay agreements, with reasons if previous plans failed
Full cooperation builds trust with HMRC and increases your chances of securing realistic, manageable repayment terms.
Step-by-Step: How a Solicitor Structures Your Application to Maximise Success
The strategic approach we use for Time to Pay negotiations focuses on detail and compliance at every stage:
- Reviewing all past HMRC correspondence and tax returns for anomalies or errors
- Carrying out an honest liquidity and viability assessment to frame the right plan
- Organising and preparing supporting evidence, including written explanations for cash flow issues or previous defaults
- Presenting a credible payment proposal clearly documenting how you will meet each instalment, with supporting cash flow charts
- Negotiating robustly with HMRC and responding to challenges or concerns, adjusting the proposal where necessary to secure agreement
- Ensuring every step is compliant with the Taxes Management Act and HMRC procedural expectations
- Monitoring the arrangement and stepping in quickly if your financial position changes
Need tailored advice or urgent negotiation assistance? Book a free video consultation with one of our solicitors for responsive, confidential support.
A solicitor-led process can make your application stand out as credible and responsible, reassuring HMRC that repayment is your top priority.
What If HMRC Rejects or Cancels a Time to Pay Arrangement?
A refusal or cancellation of your Time to Pay plan by HMRC can lead to rapid enforcement. Consequences typically include:
- Immediate demand for full payment, with statutory interest and extra penalties
- Asset freezes and forced collection proceedings (such as Controlled Goods Agreements)
- Initiating a winding up petition against your company, or bankruptcy steps for individuals
- Serious reputational damage and negative credit impacts
Loss of an arrangement genuinely endangers the future of most businesses—delaying a rapid legal response is a risk not worth taking.
You may also find our guide on How to Challenge a Tax Decision in the UK – Proven Steps for Disputing HMRC Rulings useful if you are facing an unreasonable refusal.
What Happens If I Default on an HMRC Time to Pay Plan?
Defaulting on a Time to Pay plan allows HMRC to cancel your arrangement, demand immediate payment, and escalate matters to court if necessary.
Typical HMRC steps include:
- Cancelling the agreement and demanding full settlement of the balance
- Adding statutory interest and additional late payment penalties (per Taxes Management Act 1970)
- Issuing a statutory demand or starting enforcement proceedings in court
- Commencing winding up (compulsory liquidation) or bankruptcy action in serious cases
- Notifying credit agencies, negatively affecting your personal or company credit score
If you risk missing an instalment or have already defaulted, contact our expert lawyers immediately on 0207 459 4037. Timely action can stop enforcement and open discussions about restructuring your plan.
Open communication with HMRC before a missed payment is the single most powerful tool to protect your legal and financial position.
For further insight, you may wish to read our article on How to Stop a Winding Up Petition.
What Laws and Deadlines Apply to HMRC Time to Pay Arrangements?
There is no single law covering Time to Pay plans, but several statutes and regulations are critical to understand:
- Taxes Management Act 1970 – controls tax collection, deadlines, and interest
- Insolvency Act 1986 – comes into play if HMRC seeks to wind up or bankrupt the debtor
- Care and Management of Taxes Regulations – gives HMRC discretion over payment plan approval
- Civil Procedure Rules (CPR) – applies to enforcement and timeframes for statutory demands
Key deadlines and rules:
- Time to Pay requests should be made before HMRC launches enforcement; after legal proceedings begin, negotiation leverage is greatly reduced
- Missing any payment can lead to cancellation and enforcement after a short further notice period
Seeking timely legal advice can preserve your negotiating position and protect your assets.
What Do the Courts Say About HMRC Time to Pay Disputes?
Court and Tribunal judgments make clear that strong evidence and a candid approach are vital. Successful challenges are rare unless you present full, credible documentation and keep HMRC engaged throughout the process.
| Case | Facts | Outcome | Why It Matters |
|---|---|---|---|
| R (oao Seher Tandoori Restaurant Ltd) v HMRC [2016] UKUT 424 (TCC) | Restaurant challenged refusal of a Time to Pay due to unexpected cash flow issues | Tribunal found for HMRC—application was not supported by adequate evidence or previous compliance | Proposals lacking documentation or a track record are unlikely to succeed |
| HMRC v Noor [2013] UKUT 71 (TCC) | Individual appealed against plan cancellation after alleged non-payment | Tribunal sided with HMRC—forecasts were incomplete and enforcement justified | Detailed, accurate evidence and engagement are essential |
Strategic Tips for Getting HMRC to Agree to Your Time to Pay Proposal
Success in TTP negotiations relies not just on meeting HMRC’s minimum requirements, but on evidencing integrity and realism:
- Be open about every aspect of income, cost, and financial planning—small discrepancies reduce credibility
- Offer the highest feasible repayment, with cash flow evidence to support your request
- Explain clearly why the arrears happened and what you have changed to prevent future issues
- Make the case that settling HMRC is the top financial priority, not dividends or other discretionary spending
- Prioritise rapid responses to all HMRC communication, demonstrating reliability and cooperation
- If your business faced one-off events or emergencies, set these out with honest supporting evidence
Robust preparation and practical negotiation can make the difference between a rejected proposal and a tailored solution that truly works.
Does a Time to Pay Arrangement Affect My Credit Rating or Business?
Time to Pay arrangements in themselves are not disclosed on personal or business credit files. However, if you default and this results in a County Court Judgment or a winding up petition, those enforcement steps will appear in credit records and can severely undermine your ability to trade, secure finance, or work with suppliers.
Being proactive is always preferable to being forced onto the back foot by enforcement.
Our Winning Approach to HMRC Time to Pay Solicitors
Our expert tax dispute team fuses advanced litigation skills with deep practical insight into HMRC debt enforcement, giving you the advocacy and strategic edge you need:
- Recognised for expertise in debt resolution and statutory tax disputes by leading legal directories and industry publications
- Immediate assessments for urgent deadlines, often with a same-day turnaround
- Upfront fixed fees for Time to Pay negotiations and second opinions
- Secure digital document transfer for full confidentiality
- Direct WhatsApp and encrypted messaging with your solicitor for regular progress updates
- Proven negotiation tactics to prevent or mitigate enforcement escalation, including urgent HMRC communication as needed
- Comprehensive support from initial evidence gathering to defending winding up actions, if required
- No-win-no-fee arrangements may be available in select cases, subject to eligibility
Ready to take control of your tax debt? Contact our expert litigation solicitors to discuss how our unique approach can protect your business or personal position.
Our combination of technical skill and commercial foresight gives you the support required every step of the way.
Frequently Asked Questions
How quickly can I arrange a Time to Pay with HMRC?
Simple arrangements for debts below £30,000, where tax returns are up to date, can sometimes be agreed in a single phone call. More complex or higher value cases, particularly after a previous default, often take a few days, especially when our solicitors are involved to strengthen your proposal.
Will HMRC always require personal guarantees for business TTP plans?
Not always. HMRC may ask for personal guarantees if your business assets are limited or risk is considered high. Successful negotiation by our expert solicitors can frequently avoid or limit the need for director guarantees.
Is my business eligible if we have late VAT or PAYE payments?
Yes, as long as your business remains viable and you can demonstrate that these defaults are historic rather than persistent. Repeat late payments will make HMRC less willing, so robust evidence is essential.
Can I get interest or penalties waived with a solicitor’s help?
Interest charges will normally continue until your tax is paid. Penalties may sometimes be reduced or removed if you can show a reasonable excuse or that compliance failures were beyond your control—an area where solicitors can add significant value.
Can I cancel or alter a Time to Pay agreement after it’s in place?
If your financial circumstances change, you should contact HMRC at the earliest possible opportunity to seek an adjustment. Our solicitors can help you revise the arrangement before you miss a payment.
What are my options if HMRC refuse a Time to Pay proposal?
You can provide additional evidence, ask for a formal review, appeal to the Tax Tribunal, or, if necessary, review insolvency options. Immediate legal advice is recommended to preserve and maximise available alternatives.
Will HMRC start legal action while my solicitor is negotiating?
If you have initiated negotiations before a judgment is secured, HMRC usually pauses enforcement. Delay in contacting us reduces these protections—prompt action preserves your position.
Can I include corporation tax, income tax, and VAT in a single Time to Pay plan?
Yes. HMRC can consider bundled Time to Pay proposals covering several overdue taxes in the same arrangement, as long as supporting evidence is comprehensive and up to date.
Is there any protection from winding up petitions during negotiations?
If negotiations are genuinely ongoing, HMRC may pause action. However, if a winding up petition has already been filed, you must seek urgent legal intervention. Options to save the business become far more limited after that point.
Do HMRC Time to Pay arrangements show on company credit reports?
No, but any court action or insolvency proceedings resulting from a default will appear on credit files and can impact your trading ability.
Get Expert Help With HMRC Time to Pay Arrangements Today
Managing late tax bills and HMRC payment negotiations requires clarity, urgency, and a strategic approach. By presenting accurate evidence, acting well before debts escalate, and working with our experienced solicitors, you maximise your chances of a Time to Pay deal while protecting your business, your reputation, and your assets.
Our team will structure your application for maximum credibility, represent your case with HMRC, and respond rapidly to any signs of enforcement—stopping unnecessary court action before it starts.
Call 0207 459 4037 or complete our online form for a confidential Free Consultation about your HMRC Time to Pay position.
