--- title: "HMRC Time-to-Pay (TTP) Arrangement Guide 2026 — PAYE, VAT & Corp Tax | CrisisCompass | CrisisCompass" source_url: "https://crisiscompass.co.uk/hmrc-time-to-pay-arrangement-guide" retrieved_by: "AnswerRail Edge Engine v1.1.0-parity-v20 (https://answerrail.com)" level_of_detail: "standard" token_payload_reduction: "89.7%" raw_html_bytes: 113330 compiled_body_bytes: 11636 entities_extracted: 6 currency_recall_static_html: "100%" monitored_currency_tokens: 25 faq_answer_recall_static_html: "100%" monitored_faq_answers: 2 link_recall_static_html: "100%" monitored_content_links: 14 omitted_dynamic_states: ["non_default_tab_panels", "volume_slider_tiers"] conversion_notes: "Origin renders alternate tabs and volume pricing sliders via client-side JavaScript; serving default static AST state." rfc_compliance: "RFC 9110" last_verified_at: "2026-10-25T08:49:21.883Z" cache_age_seconds: 0 origin_cache_control: "public, max-age=0, must-revalidate" --- > **Canonical Source:** [https://crisiscompass.co.uk/hmrc-time-to-pay-arrangement-guide](https://crisiscompass.co.uk/hmrc-time-to-pay-arrangement-guide) > > *How to negotiate a 12-month HMRC Time-to-Pay (TTP) arrangement for PAYE, VAT, Corporation Tax, or Self Assessment arrears under Finance Act 2009 s.108.* ### Organization: CrisisCompass | Field | Value | | :--- | :--- | | **Organization** | CrisisCompass | | **Official Website** | https://crisiscompass.co.uk | | **Overview** | Independent UK crisis management, financial support guidance, and emergency contingency portal. | ### Entity: CrisisCompass | Property | Detail | | :--- | :--- | | **Type** | WebSite | | **Name** | CrisisCompass | ### Frequently Asked Questions (FAQ) **Q: Is CrisisCompass free?** > A: Yes. All core tools — Survival Check, Benefits Finder, Hardship Letter Generator, Budget Calculator, Debt Priority Checker, and AI Chat — are completely free. Optional premium PDF documents start from £2.99. **Q: Is CrisisCompass financial advice?** > A: No. CrisisCompass provides general information and tools. For personalised financial advice, we recommend contacting StepChange (0800 138 1111) or Citizens Advice (0800 144 8848). **Q: Is my data safe?** > A: We store data locally in your browser wherever possible. The Financial Survival Check results are never saved to our servers. See our Privacy Policy for full details. ### Frequently Asked Questions (FAQ) **Q: Does an HMRC Time-to-Pay arrangement stop bailiffs and winding-up petitions?** > A: Yes. Once a formal Time-to-Pay arrangement is agreed with HMRC Debt Management and Direct Debit payments are maintained alongside current-period filings, HMRC suspends Field Force visits, Taking Control of Goods enforcement, and winding-up petitions. **Q: How many months will HMRC give on a Time-to-Pay plan?** > A: Standard HMRC Time-to-Pay arrangements run for 6 to 12 months. Longer schedules over 12–24 months are possible if supported by a credible 12-month cashflow forecast showing that the instalment is the maximum sustainable sum. # HMRC Time-to-Pay (TTP) Arrangement Guide (2026) If your Limited Company or sole trader business cannot pay a VAT, PAYE, Corporation Tax, or Self Assessment bill on time, an HMRC Time-to-Pay (TTP) arrangement suspends late payment penalties under Finance Act 2009 Section 108 and spreads the balance over 6 to 12+ monthly Direct Debit instalments. 2 min readLast reviewed: March 2026 [Generate HMRC Time-to-Pay Letter →](/tools/letters)[Download B2B HMRC & Board Minute Pack (£29) →](/pricing)[Check Financial Survival Options →](/check) ⚡ 100% Free Statutory Self-Advocacy Tool • Zero PaywallCited Statute: **Finance Act 2009 s.108 (Suspension of Late Payment Penalties)** ## Instant Statutory Letter & Notice Generator (100% Free) Generate a legally cited UK forbearance, payment plan, or HMRC Time-to-Pay letter in 30 seconds. Zero paywalls, zero sign-up required. 1\. Select Statutory Notice / Letter TypeCouncil Tax Payment Plan & S.13A Hardship Request (Local Government Finance Act 1992 (s.13A))Creditor Reduced Payment & Forbearance Proposal (FCA Consumer Credit Sourcebook (CONC 7.3))6-Month Statutory Interest & Charges Freeze Notice (FCA CONC 7.3.4G & Breathing Space Regs 2020)Rent Arrears Affordable Repayment Proposal (Pre-Action Protocol for Possession Claims)Energy Debt Payment Plan & Hardship Grant Request (Ofgem Supply Licence Condition 27 (Ability to Pay))Water Company Social Tariff & WaterSure Cap Request (Water Industry Act 1991 (s.44 Social Tariffs))HMRC Time-to-Pay (TTP) Arrangement Proposal (PAYE / VAT / Corp Tax / SA) (Finance Act 2009 s.108 (Suspension of Late Payment Penalties)) Your Name / Company Name Creditor / Council / HMRC Team Account / Council Tax / UTR Reference Total Arrears / Balance (£) Affordable Monthly Offer (£) Brief Hardship Reason 2\. Your Ready-to-Send Statutory Letter (Editable)Date: 20 October 2026 To: HM Revenue & Customs Debt Management (DM) Tax Reference (UTR / PAYE / VAT / Corp Tax Ref): \[Account / Council Tax / UTR Reference\] FORMAL TIME-TO-PAY (TTP) ARRANGEMENT PROPOSAL — FINANCE ACT 2009 SECTION 108 Dear HM Revenue & Customs Debt Management Team, I am writing as \[Your Full Name / Director Name\] regarding the outstanding tax liability of £1,450 under reference \[Account / Council Tax / UTR Reference\]. Due to a sudden reduction in household income combined with essential living cost increases, we are unable to settle the full balance in a single lump sum without jeopardising ongoing solvency and essential trading commitments. In accordance with HMRC's Time-to-Pay (TTP) operational framework and Section 108 of the Finance Act 2009 (suspension of late payment surcharges and penalties where a Time-to-Pay proposal is agreed): 1. We propose a structured monthly repayment plan of £45 per month via Direct Debit, commencing within 14 days, while ensuring all future current-period tax returns and liabilities are filed and paid on time. 2. We request that HMRC suspend any Field Force visit, Distraint / Taking Control of Goods action, or Winding-Up / Bankruptcy proceedings while this Time-to-Pay arrangement is active. We have completed a full cashflow review to ensure that £45 per month is realistic and sustainable. Please contact us or confirm acceptance of this Time-to-Pay schedule so we can establish the Direct Debit mandate immediately. Yours faithfully, \[Your Full Name / Director Name\] 📋 Copy Letter Text (Free)🖨️ Open Print-Ready A4 PDF (£0 Free)⬇️ Download .TXT ## How HMRC Time-to-Pay (TTP) Works in 2026 Under **Section 108 of the Finance Act 2009**, if you contact HMRC Debt Management and agree a Time-to-Pay schedule before a late payment penalty date, HMRC suspends further late payment surcharges provided you honour the agreed Direct Debit schedule. ### Express Self-Serve TTP Thresholds (Up to £30,000) - **Self Assessment & PAYE/VAT under £30,000**: Often eligible for express setup without submitting full management accounts, provided all tax returns are filed and the balance clears within 6–12 months. - **Arrears over £30,000 or Repeat TTP Requests**: HMRC Debt Management will require a written **12-Month Rolling Cashflow Forecast**, an explanation of why arrears arose, and confirmation from the Board of Directors that ongoing taxes will be paid on time. ## Companies Act 2006 s.172(3) & Director Solvency Duties When a Limited Company enters a Time-to-Pay arrangement while cashflow is tight, directors must document a formal **Board Solvency Minute** under Section 172(3) of the Companies Act 2006 and Section 214 of the Insolvency Act 1986 confirming why continuing to trade is in the best interests of creditors. 🏢 UK Limited Company Director Triage • Finance Act 2009 s.108 & ERA 1996 s.166PAYE • VAT • Corporation Tax • Bounce Back Loans ## Running a Limited Company with HMRC Arrears or Business Debt? Calculate your monthly **HMRC Time-to-Pay (TTP)** instalment and check if you qualify for a tax-free **Company Director Statutory Redundancy & Notice Payout** from the government's National Insurance Fund (Employment Rights Act 1996 s.166) if your company ceases trading. HMRC / Company Debt£28,000 £3,000£30k Express Line£150,000+ Years as PAYE Director6 years 0 yrs2 yr Statutory Min20 yrs Weekly Gross PAYE Salary£520/wk £180/wk£700 Statutory Cap Option A: Keep Trading via HMRC Time-to-Pay ~£2,422 / month over 12 months ✓ Under £30,000 threshold: Eligible for HMRC Express Self-Serve / Direct Debit Time-to-Pay arrangement without full security. Option B: Estimated Director Redundancy Claim (Gov RPS) £6,552 Tax-Free Estimate Includes ~£3,900 statutory redundancy + ~£2,652 statutory notice pay from the National Insurance Fund (Form RP1/RP2). Often covers 100% of liquidation costs. 📄 Download B2B HMRC Time-to-Pay Proposal, Cashflow Table & s.172 Board Minute (£29 Instant Pack)🏪 Commercial Rent (CRAR) & Trade Creditor Pack (£19) Need free confidential charity guidance for a sole trader or SME? Call **Business Debtline** free on [0800 197 6026](tel:08001976026) (uk\_b2b\_corporate\_insolvency self-serve governance triage). 🏠 Ofgem ECO4 & £7,500 Boiler Upgrade Scheme (BUS) • 2026 Funding Open12 Verified UK MCS-Accredited Installers ### Cut Monthly Energy Bills by £650–£1,100/yr: Check £7,500 Heating & ECO4 Grant Eligibility If anyone in your household receives **Universal Credit, Pension Credit, PIP, Attendance Allowance, Carer's Allowance, or Council Tax Reduction** (or your household income is under £31,000 under ECO4 Flex), you may qualify for 100% funded insulation, solar, or the **£7,500 Government Boiler Upgrade Grant** with zero repayment required. ✓ £7,500 BUS Voucher✓ ECO4 Flex Low-Income Route✓ Direct MCS-Certified Assessment Check My Postcode for £7,500 / ECO4 Grants →Takes 45 seconds • No impact on credit score - **[Check Unclaimed Council Credit Balances & Band Reductions (CouncilCredit.co.uk)](https://councilcredit.co.uk?utm_source=crisiscompass&utm_medium=sovereign_hub)** — SI 1992/613 Reg 14 • Household & CommercialSearch Ledger →UK councils hold over £310m in unrefunded credit balances from closed accounts, overpayments, and backdated Band A–H revaluations. Check if your council owes you a BACS refund. - **[Reclaim Backdated Small Business Rates Relief (RatesReclaim.co.uk)](https://ratesreclaim.co.uk?utm_source=crisiscompass&utm_medium=sovereign_hub)** — LGFA 1988 s.43(4B) • UK Shopfronts, Workshops & OfficesCheck Relief →Sole-property UK businesses with a Rateable Value ≤ £12,000 qualify for 100% Small Business Rate Relief. Audit your property or refer a local business for a £75–£150 partner referral reward. ## Frequently Asked Questions Does an HMRC Time-to-Pay arrangement stop bailiffs and winding-up petitions? Yes. Once a formal Time-to-Pay arrangement is agreed with HMRC Debt Management and Direct Debit payments are maintained alongside current-period filings, HMRC suspends Field Force visits, Taking Control of Goods enforcement, and winding-up petitions. How many months will HMRC give on a Time-to-Pay plan? Standard HMRC Time-to-Pay arrangements run for 6 to 12 months. Longer schedules over 12–24 months are possible if supported by a credible 12-month cashflow forecast showing that the instalment is the maximum sustainable sum. ## Related Guides - **[Corporation Tax Arrears: UK Company Director Options](/corporation-tax-arrears-company-director-help)** — Struggling to pay UK Corporation Tax? Compare HMRC Time-to-Pay arrangements, Director Loan Account rules, and Creditors' Voluntary Liquidation (CVL) options. - **[PAYE & VAT Arrears Help for UK Businesses](/paye-and-vat-arrears-help-uk)** — Urgent help for UK Limited Companies and sole traders with PAYE, National Insurance, or VAT arrears. How to stop HMRC Distraint and agree a Time-to-Pay plan. - **[Can Company Directors Claim Statutory Redundancy Pay?](/director-redundancy-pay-claim-guide)** — Calculate your tax-free Company Director Statutory Redundancy & Notice Pay from the National Insurance Fund under Employment Rights Act 1996 s.166. ## Sources & Further Reading [GOV.UK — Debt Management](https://www.gov.uk/options-for-paying-off-your-debts)[FCA Handbook — CONC](https://www.handbook.fca.org.uk/handbook/CONC.pdf)[National Debtline](https://www.nationaldebtline.org/) ### Get a free recovery plan by email We'll send you a personalised action plan with next steps, plus practical tips over the following week. Subscribe This page provides general information only and is not financial or legal advice. 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