Out of all the different debts that businesses accrue, those owed to HMRC are far and away the most likely to lead to insolvency.

It’s not difficult to see why. Tax bills are often collected in one large amount at the end of the tax year, with figures that business owners haven’t always prepared for. With many SMEs operating on tight margins already, these bills can be the difference between survival and closure.

Sadly, there are still thousands of otherwise viable businesses closing each year because their owners aren’t aware of any alternative when faced with a daunting tax bill. Forbes Burton have been helping companies avoid closure for years, and even have a specialist team that helps businesses navigate HMRC debt.

This is done via a Time to Pay arrangement. HMRC are able to cut tax bills into more manageable payments but are often reluctant to do so. Forbes Burton’s specialists negotiate on behalf of clients to not only secure a payment plan, but also bring each instalment to a comfortable level over as long a period as needed.

How big is your tax bill?

A Time-to-Pay arrangement can be applied to any size of debt, with Forbes Burton having negotiated many large debts into payments that companies can actually handle.

There are no upper or lower limits to qualifying for a Time-to-Pay arrangement, but bear in mind that HMRC do charge interest on these payment plans. If your bill is low enough to comfortably pay outright, this can sometimes be the best option to choose.

You need to free-up funds for growth strategies

A large tax bill can put a serious dent in any plans you may have for growth strategies. Using a sizeable amount of your cash reserves to pay off HMRC can not only scupper growth plans, but also leave your business financially vulnerable.

In these cases, you could be best served to apply for a Time-to-Pay arrangement even though you might be able to stretch to the full amount in one payment.

Has your business had a Time-to-Pay arrangement before?

While having had a Time-to-Pay arrangement beforehand doesn’t have a bearing on securing another, HMRC will take any defaulted payments into account.

While it’s still not impossible to secure another Time-to-Pay arrangement after defaulting on a previous payment plan from HMRC, it can, understandably, make it more difficult.

Is your business secure?

If your company has been struggling for some time regardless of HMRC debt, it may make more sense to close.

Business owners that suspect that they’ll struggle to survive even with the help of a Time-to-Pay arrangement may be best served to liquidate instead before the company accrues more debt. Speaking to a specialist business consultant, such as those at Forbes Burton, will make the best route for your company much clearer.

There may even be other methods available that you can use to boost your cash reserves to cope with untimely bills, such as invoice factoring. Speak with your business consultant to determine your best option.

A large tax bill needn’t be a company’s death sentence

With Time-to-Pay options available for most scenarios, it’s frustrating to see so many businesses fold or struggle because of large tax bills.

If you think your business might benefit from spreading its tax payments out over a longer period of time, it’s worth taking five minutes to talk to an experienced business advisor about the possibility of applying for a Time-to-Pay arrangement. Forbes Burton offers free, no-obligation consultations that advise business owners of the best options to take.