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Time to Pay basics

How to set up a payment plan with HMRC if you can't pay in full, and what HMRC will and won't agree to.

RR AccountantsLast updated: 2025-01-154 min read

What Time to Pay is

A Time to Pay (TTP) arrangement is a payment plan you agree with HMRC when you can't pay a tax bill in full by the deadline. You commit to monthly instalments, usually over 6 to 12 months, and HMRC pauses enforcement.

What HMRC needs to agree

  • You're a "viable" taxpayer or business — you can pay over time, just not now
  • The plan is realistic — monthly payments you can actually afford
  • You're up to date with all returns and other obligations (file before you ask)
  • You haven't been on multiple TTP arrangements that you've broken before

How to set one up

Self Assessment

You can set up a Time to Pay online via the HMRC self-serve service if you owe less than £30,000 and apply within 60 days of the deadline. Otherwise call the Self Assessment Payment Helpline.

VAT

You can self-serve online via your Government Gateway account if you owe less than £20,000 and within 30 days of the payment deadline. Otherwise call the VAT helpline.

Corporation Tax and PAYE

Always by phone — there's no self-serve option. Call the Business Payment Support Service.

What HMRC will ask

  • How much you owe and which tax
  • Why you can't pay in full now
  • What you can pay each month
  • Income and expenditure (especially for larger amounts)
  • Why you didn't anticipate this

Trade-offs

  • Interest still accrues on the unpaid balance — TTP doesn't pause that
  • Late payment surcharges may pause if you set up TTP before they trigger
  • Future obligations must be met on time — break the plan and HMRC may withdraw
  • Affects future credit applications in some cases

If HMRC says no

You can ask for the case to be reviewed, propose a different plan, or in extreme cases discuss insolvency options with a licensed practitioner. Don't ignore HMRC — that leads quickly to enforcement action.

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