An HMRC Time to Pay arrangement fell through and I owe the balance — can I borrow?

A lapsed Time to Pay arrangement makes the whole tax balance due; a short facility clears it in one payment and avoids enforcement action against the company. When a Time to Pay arrangement fails, HMRC can demand the full outstanding amount and add interest and penalties. Enforcement action can follow, which is disruptive and public.

An HMRC Time to Pay arrangement fell through

2 min read

Balance dueArrangement lapsed

Clear itOne payment

Avoid enforcementProtect trading

Why the balance accelerates

When a Time to Pay arrangement fails, HMRC can demand the full outstanding amount and add interest and penalties. Enforcement action can follow, which is disruptive and public.

Clearing it with finance

A short working-capital facility settles the tax in one payment, removing the enforcement risk. You then repay the lender on terms structured around your cash flow rather than HMRC's timetable.

Get the underlying cash flow right

Set money aside for future tax from the start — our how-to on setting money aside for VAT and tax shows a simple method. Borrowing solves this bill; discipline stops the next one.

What it means for you

Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online when the numbers work.

Frequently asked questions

Can I get a business loan to pay overdue tax?

Yes. Clearing tax arrears through a facility is a common and sensible use of business finance, and it usually costs less than HMRC penalties and the damage of enforcement.

Will HMRC arrears stop me borrowing?

Not automatically. Lenders look at the whole picture — being upfront about the arrears and showing a clear repayment plan works far better than hiding it.