A Time to Pay (TTP) agreement is a way of spreading your tax payments over a longer period of time and can be used for VAT, PAYE and corporation tax arrears. If your company is experiencing cash flow problems it could provide a temporary solution and enable you to trade out of difficulties.

If HMRC agrees that the business is viable then you should be able to negotiate with them and buy yourself some time. Communication is always key in these situations– HMRC can seem intimidating at times but on the whole they are approachable and willing to help, at least in the short term.

It must be stressed however that if you break the agreement HMRC will act swiftly and the consequences can be severe. If they believe the company is insolvent they may withdraw co-operation and instead seek to wind up the company.

Before speaking to HMRC it is always prudent to get some professional advice – at the Insolvency Helpline we can guide you through the TTP process and possibly find a more long term solution to your company’s cash-flow problems.

We may be able to agree a Company Voluntary Arrangement (CVA) instead which will actually write off much of the company’s debts giving it a far better chance of survival. If on closer inspection the business is no longer viable you may be able to liquidate it and claim redundancy (our average claim is £12,000) from the government’s National Insurance Fund – rather than struggle to meet TTP payments this could allow you to make a fresh start and start another company instead.

You may have more options than you think so to find out if TTP is the best way forward why not call us on +4477 1566 4532 or try our Free 60 Second Test!