HMRC can agree a payment plan. Sometimes that's the right answer.
Time to Pay is HMRC's instalment arrangement for businesses that can't meet a tax bill on time. We're a commercial finance broker. This page explains how Time to Pay works so you can decide if it suits your situation, or if specialist finance is a better fit.
What Time to Pay actually is
Time to Pay is a payment arrangement directly with HMRC. They agree to spread your tax bill over a set period, usually up to 12 months, with interest charged at HMRC's late payment rate (currently Bank of England base plus 4%). There's no broker in the middle and no fee for setting one up. You pay HMRC monthly by Direct Debit until the bill is cleared.
For VAT bills under £50k and Self Assessment under £30k, you can apply online and get a decision the same day, provided your returns are up to date and you fit the standard conditions. Larger amounts, Corporation Tax, and most PAYE arrangements need a phone conversation with HMRC's Business Payment Support Service. They'll ask about your trading position, why you can't pay, and what you can afford. There's no guarantee of agreement and no published rules for what they'll accept.
When Time to Pay is the right answer
Small VAT bill
Bill under £50k, you can self-serve, and you can clear it in 12 months without choking cashflow.
Short-term timing issue
You're certain the cash is coming, you only need a few months. HMRC interest may cost less than commercial finance for short windows.
One-off slip
Clean compliance history, single missed bill, recoverable position. HMRC are reasonable when this is genuinely a one-off.
When commercial finance is the right answer
Larger amounts
Bill is £50k+ on VAT or any size on Corporation Tax. Time to Pay for these means a phone negotiation, no guarantee of agreement, and pressure during the call.
Cashflow protection
You can technically pay the bill, but draining the bank to do so means you can't pay suppliers, payroll, or invest in stock. Spreading the cost protects working capital.
Speed and certainty
You need this sorted today, not after a phone queue. Decisions in hours, money to HMRC on your due date.
Side by side
Option A
Time to Pay
Option B
Tax bill finance
- Provider
- HMRC
- Provider
- Specialist commercial lender via us
- Cost
- HMRC late payment interest rate
- Cost
- Fixed monthly repayment, transparent fee
- Term
- Up to 12 months typical
- Term
- 3 to 12 months
- Speed
- Self-serve online (small bills) or phone negotiation (larger)
- Speed
- Decision in hours, HMRC paid on due date
- Approval
- Discretionary, conditions apply
- Approval
- Based on trading position and bill size
- Impact on credit
- None directly, but unpaid HMRC liability shows in filings
- Impact on credit
- Standard commercial finance footprint
- Best for
- Small bills, short-term cashflow gaps, clean compliance record
- Best for
- £10k to £1m, protecting cashflow, larger bills, faster certainty
Not sure which fits?
Tell us your bill, your trading position, and what you're trying to protect. We'll tell you straight if Time to Pay is the better route or if commercial finance fits. We're a broker, not a lender, and if the maths doesn't work we'll say so.
Disclaimer · The information on this page is general guidance about UK commercial finance options for limited companies and LLPs. It is not legal, tax, or financial advice and should not be relied on as such. Eligibility, rates, and terms vary by lender and are subject to credit assessment. Tax Bill Loans is a trading name of Funding Flow, a commercial finance broker; arranging finance for UK corporates is outside FCA regulatory scope. For advice specific to your situation, speak to your accountant, solicitor, or a qualified adviser.