HMRC Debt and Arrears / QUICK LINKS

Get Back in Her Majesty's Good Books

Did you know...
It is possible to speak to HMRC to discuss a Time to Pay Arrangement.

A number of successful businesses are faced with pressure from HMRC. It could be that you are behind with your VAT, PAYE or Corporation Tax payments to HMRC or you are unable to discharge liabilities in full. In most circumstances, these will be indicators to HMRC that your business could potentially be insolvent.

Any arrears to HMRC need to be dealt with immediately otherwise late or delayed payments can alert HMRC to outstanding debts and prompt them to issue a Winding-Up Petition against your company. It is possible to speak to HMRC to discuss a Time to Pay arrangement (TTP) provided you have a sustainable cash flow and can make payments on time to discharge the arrears.

If you have already received correspondence from HMRC in the form of a Statutory Demand or Winding-Up Petition you need to take action now to give your business the best possible chance of rescue. Not only could this potentially lead to the liquidation of your company, but monies owed to HMRC could attract personal liability. If you continue to trade your company whilst insolvent, you could be faced with personal liability towards your company’s debts.

Clark Oliver have years of experience in speaking to and dealing with HMRC and we have helped hundreds of business owners.

We are able to assist companies to avoid the winding-up of your company.

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Key Options for Dealing with Tax Arrears

Clark Oliver have a number of solutions available to companies when faced with outstanding HMRC debts:

  1. Firstly you can call HMRC and discuss what’s known as a Time to Pay arrangement (TTP) with them. This can be a daunting prospect for many business owners but one that can buy you the time to find the money to repay the debt. They will ask you a number of questions about your business and what monies you are expecting and when. You will be required to explain why you are currently having difficulties paying the tax that you owe and what steps you have taken/taking to pay the debt.

  2. Clark Oliver are able to assist in speaking to HMRC on your behalf. We have years of experience in speaking with HMRC and it isn’t an intimidating process for us. We have a high success rate in dealing with HMRC and as Licensed Practitioners we are suitably placed to assist you in avoiding winding-up or further tax penalties.

  3. Have you considered raising finance to discharge your HMRC liabilities? Do you have company equipment, property, vehicles that can be used as leverage to raise funds? We work with an extensive network of national asset based lenders and invoice discounting/factors which can be used to cash advance your current invoices, providing you with the funds to pay HMRC.

  4. Propose a Company Voluntary Arrangement (CVA). A CVA is a legally binding agreement between your company and its creditors whereby you propose an affordable monthly payment over a period of time in full satisfaction of your unsecured debts allowing you to continue trading. As Insolvency Practitioners we are able to implement a CVA on your behalf.

  5. Finally, there are other insolvency options available such as Company Administration. This is a costly process but can be a highly successful tool when it comes to restructuring the company and preserving the company assets and contracts.


It is worth bearing in mind that although you may be a limited company, you can still be held personally liable for debts owed to HMRC. If you fail to pay National Insurance Contributions (NIC) then HMRC can pursue you for personal tax arrears.

Here at Clark Oliver we have engaged and assisted numerous Directors with their tax affairs and implements Time to Pay arrangements. Remember, all of our initial conversations and meetings are free of charge, so get in touch today.

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