What happens when you owe HMRC
Unlike commercial lenders, HMRC has exceptionally powerful debt collection tools. They can take money directly from your bank account, send enforcement agents (bailiffs) to your home or business, and even petition for your bankruptcy — all without needing a court order in many cases.
The Time to Pay (TTP) arrangement
A TTP arrangement allows you to pay your tax debt in affordable monthly instalments over an agreed period (usually up to 12 months). HMRC is generally receptive if you approach them before they escalate enforcement action.
How to successfully negotiate a TTP
- Act before HMRC contacts you: Proactive contact dramatically increases your chances of approval.
- Know your numbers: Have a detailed income and expenditure breakdown ready.
- Be realistic: Only offer what you can genuinely afford. Defaulting on a TTP makes future arrangements extremely difficult.
- Keep current taxes up to date: HMRC expects you to meet all ongoing obligations while repaying the arrears.
For complex cases, having a professional negotiate on your behalf can make the difference. Our commercial debt advice team specialises in HMRC negotiations.
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