HMRC Time to Pay Arrangements

For many businesses carrying stacked short-term debt, outstanding tax liabilities (VAT, PAYE/CIS, or Corporation Tax) are often part of the picture too. Left unresolved, HMRC arrears can block access to the very refinancing that would solve the problem, because most funders will not lend to a business with live tax debt, where HMRC could distrain on assets or commence insolvency proceedings.

That's why, at Strata, resolving HMRC arrears is the essential first layer of the solution — not an afterthought.

What is a Time to Pay (TTP) Arrangement?

A Time to Pay arrangement is a formal agreement with HMRC to repay outstanding tax liabilities in manageable instalments over an agreed period, rather than as a single lump sum. Structured correctly, a TTP arrangement:

Brings your business back into good standing with HMRC
Stops the immediate threat of enforcement action
Removes a major obstacle to securing new funding
Gives you breathing room while your wider refinance is put in place

It is also worth noting that this TTP arrangement effectively becomes an unsecured loan, at very low interest rates and usually without any personal guarantees.

How Strata Helps

Negotiating directly with HMRC can be difficult. A poorly structured request can often do more harm than good. We also need the TTP to be as long as possible to reduce debt serviceability burden.

We work with a trusted specialist partner experienced in negotiating Time to Pay arrangements on behalf of businesses, so that:

The proposal reflects a realistic, evidenced repayment capacity
It is presented in the way HMRC expects to see it
It is aligned with the wider refinancing plan we are putting together on your behalf

Our TTP specialist know how HMRC operate, understand their processes and have direct lines with many senior people in various departments. Once HMRC arrears are on a stable footing, your business becomes eligible for the next stage: a properly structured, affordable refinance through our CDFI funding network.