For many businesses carrying stacked short-term debt, outstanding tax liabilities (VAT, PAYE/CIS, or Corporation Tax) are often part of the picture too. Left unresolved, HMRC arrears can block access to the very refinancing that would solve the problem, because most funders will not lend to a business with live tax debt, where HMRC could distrain on assets or commence insolvency proceedings.
That's why, at Strata, resolving HMRC arrears is the essential first layer of the solution — not an afterthought.
A Time to Pay arrangement is a formal agreement with HMRC to repay outstanding tax liabilities in manageable instalments over an agreed period, rather than as a single lump sum. Structured correctly, a TTP arrangement:
It is also worth noting that this TTP arrangement effectively becomes an unsecured loan, at very low interest rates and usually without any personal guarantees.
Negotiating directly with HMRC can be difficult. A poorly structured request can often do more harm than good. We also need the TTP to be as long as possible to reduce debt serviceability burden.
We work with a trusted specialist partner experienced in negotiating Time to Pay arrangements on behalf of businesses, so that:
Our TTP specialist know how HMRC operate, understand their processes and have direct lines with many senior people in various departments. Once HMRC arrears are on a stable footing, your business becomes eligible for the next stage: a properly structured, affordable refinance through our CDFI funding network.
Free Diagnostic Tools
Three quick tools to give you an honest, indicative picture before you talk to anyone. All figures are estimates only, not a lending decision.
A fast, indicative read on where you'd likely sit against typical CDFI / British Business Bank-backed scheme criteria.
Your indicative result will appear here.
See what consolidating your current commitments into a single facility could do to your monthly cashflow.
Your indicative comparison will appear here.
A rough monthly installment estimate for spreading outstanding HMRC arrears — the first step before most lenders will consider you.
Your indicative installment will appear here.
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