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Time To Pay Arrangements

Time to pay arrangements

You can use a Time To Pay arrangement where you are trying to keep your business going and avoid all the consequences of a formal insolvency like liquidation or bankruptcy.

The usual first creditor to ask for time to pay is HM Revenue and Customs for VAT, PAYE, Income Tax and Corporation Tax arrears. They will consider letting you spread built up arrears over many months. Usually this is up to maximum of 12 months but since Covid this may be for a longer period than that in exceptional circumstances. HM Revenue and Customs may ask you to do a cash flow forecast to prove you can afford to make the payments and that you can maintain new payments as they fall due.

You can then ask other creditors for help with time to pay including bank loans, business rates and utilities and suppliers.

This financial breathing space can help you to sell spare assets (or refinance them) and collect in debtors to improve your business finances.

If you need help with a Time To Pay we can deal with your creditors for you and help you with your cash flow forecasts.


Advantages to Time To Pay
  1. There is no formal insolvency, so it is confidential between you and your creditors.
  2. You can keep the business going and customers do not know nor do employees.
  3. It means transaction such as preferences or overdrawn loans accounts do not have to be immediately repaid.
  4. There is no report on the director’s conduct to the Insolvency Service so no risk of a director’s ban.
Disadvantages of Time To Pay
  1. You may still be under a lot of pressure financially.
  2. If you do not keep up with the agreed payments your business may then be pushed into liquidation.
  3. It is not good if the financial position gets worse. There is no defence to say you did not know it was already bad because of course you had arranged a Time To Pay.


We meet the same problems all the time for business in trouble and you are not unique, and you are not alone.
What does make a difference is recognising early on that you need help – the sooner you get help the more chance of saving your business.

David Kirk


David Kirk ACA FABRP

Just a quick email to say a heartfelt thank you for your very calm, considered, expert advice regarding my circumstances on Tuesday. Things looked bleak before you explained my options much more clearly, in simple layman’s terms.
Rob Elliott (14th December 2021)



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David Kirk

Licensed Insolvency Practitioner