Business Debt Help
HMRC Arrears & Time to Pay
Practical help with VAT, PAYE and Corporation Tax arrears — including negotiating affordable Time to Pay arrangements.
HMRC is the most common creditor of struggling UK companies. Falling behind on VAT, PAYE or Corporation Tax can quickly escalate from reminder letters to surcharges, enforcement visits and, ultimately, a winding-up petition.
The good news is that HMRC would generally rather reach a workable arrangement than force a viable company under. With the right approach — and realistic proposals — many tax arrears can be managed through a Time to Pay arrangement or a formal insolvency solution.
Time to Pay (TTP) arrangements
A Time to Pay arrangement is an agreement to clear tax arrears in instalments, usually over up to 12 months. It needs a realistic proposal you can sustain and full engagement with HMRC.
We help directors prepare and negotiate TTP proposals that HMRC is likely to accept and that the business can actually afford — breaking the cycle of broken arrangements.
VAT, PAYE and Corporation Tax arrears
Each tax brings its own pressures. VAT and PAYE in particular are treated by HMRC as money held on others’ behalf, so arrears are viewed especially seriously.
Where arrears have built up across several taxes, we look at the whole picture and recommend the route — an informal arrangement, a CVA, or a formal insolvency process — that gives the best overall outcome.
What happens if you can’t pay
If arrears can’t be resolved, HMRC can apply surcharges and penalties, instruct enforcement officers, in limited cases transfer liabilities to individuals, and ultimately petition to wind the company up.
Acting early — before enforcement escalates — almost always produces more options and a better outcome.
Frequently asked questions
Can I really negotiate with HMRC?
Yes. HMRC has a dedicated process for Time to Pay arrangements and would often rather recover the debt over time than force a viable business to close. The key is a realistic, well-presented proposal.
What if I’ve already broken a Time to Pay arrangement?
It’s harder, but not always hopeless. A fresh, credible proposal — sometimes alongside a formal solution like a CVA — can still resolve matters. Don’t ignore it, as that’s when enforcement escalates.
Can I be made personally liable for company tax?
Usually company tax is the company’s liability. HMRC can transfer liability personally in limited circumstances, such as fraud or certain PAYE/NIC failures, or via a personal liability notice. We’ll assess your exposure.
HMRC has threatened a winding-up petition — what do I do?
Treat it as urgent. Once a petition is advertised your bank account can be frozen. Contact us immediately — acting before the petition is presented gives you far more options.
Is my conversation with you confidential?
Completely. We give free, confidential, no-obligation advice so you can understand your options before deciding anything.
HMRC Arrears across Greater Manchester
We help directors with HMRC arrears in 29+ towns within 30 miles of Manchester. Find your area:
Related services
Winding-Up Petition
Urgent help if a creditor is threatening or has issued a winding-up petition against your company.
Learn moreCompany Voluntary Arrangement (CVA)
A legally binding agreement to repay creditors over an agreed period while the company keeps trading.
Learn moreCreditors' Voluntary Liquidation (CVL)
The most common way to voluntarily close an insolvent limited company and settle outstanding debts fairly.
Learn moreWorried about tax arrears and mounting pressure from HMRC?
Free, confidential, no-obligation advice for company directors. We’ll explain your options and the best next step.