HMRC's Time to Pay (TTP) service lets companies spread an overdue tax liability — PAYE, VAT, corporation tax — into monthly instalments. Approval is not guaranteed, and once agreed, missing a payment can void the arrangement and make the full amount immediately due. Many directors seek TTP precisely when cashflow is already stretched, which means the monthly instalments are themselves a pressure.
Where business finance fits in
A Credicorp facility does not replace a TTP arrangement; it supports one. If your company is in TTP for, say, six monthly instalments and one of those months has an unusually high cost (a supplier renewal, a seasonal staffing spike), a short-term draw from a Credicorp facility can cover the TTP payment that month so the arrangement stays intact.
Using finance to fund the original tax bill directly
Some companies find it more straightforward to pay a tax liability in full using a lump-sum facility, rather than negotiating TTP. Paying HMRC in full removes the compliance overhead of maintaining the arrangement and avoids the risk of a missed instalment voiding it. The cost of a short-term facility may compare favourably to HMRC's late-payment interest rates (illustrative reasoning, not a quote).
What directors should consider
- If TTP is already approved, the priority is keeping every instalment on time.
- If you have not yet approached HMRC, a lump-sum facility that settles the debt in one go can be faster and simpler.
- Always keep HMRC informed if your situation changes during a TTP arrangement — they may prefer renegotiation to default.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: Funding a VAT bill with business finance, Funding a corporation tax bill.