Time to Pay

An arrangement with HMRC to pay tax in instalments. Available, and better used early.

What it means

Time to Pay is an instalment arrangement with HMRC for tax that cannot be paid by the due date.

Why it matters

It is far easier to agree before enforcement starts. HMRC has substantial powers — direct recovery from bank accounts, distraint, winding-up petitions — and uses them.

What it looks like in practice

There is a self-serve facility for smaller debts and a helpline for larger ones. Interest still accrues; late payment penalties may be avoided.\n\nA realistic proposal with a cash flow forecast behind it is far more likely to be accepted.

What to watch out for

Ignoring it. Unpaid tax is the single commonest trigger for winding-up petitions against small companies, and HMRC is the most frequent petitioner.

Where to get proper advice

GOV.UK for the current rates and thresholds, which move most years. Your accountant before acting — this is exactly the kind of question a fee is for.