What are time-to-pay arrangements with HMRC?

A time-to-pay arrangement (TTP) is an agreement between a company and HMRC that allows tax arrears to be repaid in instalments over an extended period, usually 6 to 12 months but sometimes longer. TTPs are designed to give businesses breathing space and avoid immediate insolvency caused by tax enforcement. To secure a TTP, directors must demonstrate that the business is viable and that future tax obligations will be met on time. HMRC will expect detailed cashflow forecasts and evidence of affordability. If the company defaults on the arrangement, HMRC can cancel it and resume enforcement, including issuing statutory demands or winding-up petitions. TTPs are often a lifeline for businesses struggling with temporary cashflow problems. However, they are not a permanent solution and should be used alongside broader restructuring efforts to ensure long-term survival.