Can you help if we have HMRC arrears or need support alongside a Time to Pay arrangement?

The short answer, and how we can help

Yes — in many cases we can help you explore finance options even if you have HMRC arrears or an active Time to Pay (TTP) arrangement. Best Business Loans does not lend directly; we use AI-driven matching to introduce UK businesses to lenders or brokers who understand HMRC situations. While funding is never guaranteed, we can connect you to providers who may consider applications with tax arrears when the wider business case stacks up.

If you have arrears on VAT, PAYE/NICs, or Corporation Tax, or you have agreed a TTP with HMRC, the key is to present a credible plan and up-to-date information. Many commercial lenders will ask whether you are meeting current tax liabilities on time and complying with the TTP. Some will be more comfortable where arrears are controlled under a formal plan, rather than open and escalating.

Our role is to help you navigate this landscape quickly and responsibly. You complete a Quick Quote, our system analyses your profile, and we introduce you to finance professionals who are actively lending to businesses like yours. You stay in control, compare options, and decide what fits your cash flow and objectives.

What we do (and don’t do)

• We do: use data to identify suitable funding types and introduce you to relevant lenders or brokers.
• We do not: provide loans, offer financial advice, or guarantee approval or the lowest rate.
• We focus on: established UK companies, not start-ups, sole traders, franchises, property finance, or commercial mortgages.

When HMRC arrears and TTP may still be fundable

• Arrears are documented and either under an agreed TTP or being finalised with HMRC.
• You are current on ongoing taxes since the TTP began and have missed no instalments.
• There is demonstrable trading strength, visible debtor book quality, or tangible assets to support a case.

How we support businesses managing HMRC arrears

Our matching process is built to save you time, reduce scattergun enquiries, and highlight realistic routes. You complete a short form, our AI triages your situation, and we connect you with finance professionals who have an appetite for HMRC and TTP cases. This can include secured and unsecured options, subject to status and sector fit.

Transparency is essential when HMRC is involved. Lenders and brokers typically want to see when arrears arose, what taxes are due, and how your TTP is structured. Being upfront about any missed payments, enforcement notices, or penalties helps your introducer position your case properly.

Provide concise, recent information so your case can be assessed quickly and fairly. This reduces back-and-forth, minimises delays, and improves the chance of a constructive outcome. It also helps lenders forecast affordability and cash flow.

Information that usually helps fast-track your enquiry

• HMRC communications: arrears breakdown, reference numbers, and TTP terms (monthly amount and duration).
• Recent management information: last 6–12 months’ P&L, balance sheet, aged debtors/creditors, and bank statements.
• Context: what triggered arrears (e.g., seasonal dip, one-off cost, delayed debtor), and steps taken to stabilise cash flow.
• Security overview: assets owned, existing finance, and any headroom for refinance or asset-based lending.

How our AI matching works in practice

1. Complete a Quick Quote with your funding purpose and HMRC context.
2. Our system evaluates sector, size, assets, debtor profile, and your TTP status.
3. We introduce you to relevant lenders or brokers who may tolerate HMRC arrears.
4. You compare options, discuss terms, and choose the route that suits your plan.

Funding options that may work alongside a Time to Pay

Different finance products suit different arrears scenarios, and appetite varies by lender. Below are common categories that are sometimes considered in tandem with HMRC arrears or a TTP arrangement, subject to eligibility and risk appetite.

Where possible, lenders prefer to see new finance improving cash flow rather than simply displacing the HMRC liability without a sustainable plan. Expect questions about margins, debtor quality, order book, and stability of revenue.

This is not financial advice; it is a general overview to help you prepare before speaking with a regulated finance professional. Any offer and pricing will depend on your specific circumstances and credit assessment.

Invoice finance (factoring or discounting)

• Releases cash tied up in unpaid invoices to improve working capital.
• Often suitable for B2B firms with strong debtor books and predictable payment behaviour.
• Some providers accept HMRC arrears if the facility clearly supports ongoing operations and TTP compliance.

Asset finance and refinance

• Funds new equipment or refinances existing machinery, vehicles, or plant to raise working capital.
• Secured on the asset, which can help if unsecured appetite is limited due to arrears.
• Useful where tangible assets exist and repayments align with productive use.

Secured working capital loans

• Typically secured against assets, debenture, or director guarantees where appropriate.
• More likely to be considered when a TTP is in place and being maintained.
• May be used to stabilise cash flow if affordability and business resilience are clear.

Merchant/carded revenue finance

• Repayments flex with card takings, which can support businesses with seasonal revenue.
• Providers will review card volume trends and sustainability of turnover.
• Arrears may be tolerable if repayments are affordable and TTP is honoured.

Short-term VAT or tax funding

• Specialist products may spread upcoming VAT or tax bills to avoid new arrears forming.
• Arrears-only consolidation is less common; lenders focus on forward-looking affordability.
• Clear presentation of payment schedules helps underwriting confidence.

Important risks and responsibilities

• Missed repayments can affect credit, increase costs, or lead to recovery action.
• Where facilities are secured, assets may be at risk if you default.
• Keeping up with current taxes and your TTP is vital for lender confidence.

Eligibility, timelines, and realistic outcomes

Lenders consider the whole picture when HMRC arrears are present. They will weigh trading performance, sector resilience, management track record, and the credibility of your recovery plan. Evidence of strengthened controls, tighter credit management, or cost reduction can meaningfully improve your case.

If you have recent missed TTP instalments, emergency enforcement activity, or unfiled returns, expect the process to be harder. The stronger your documentation and rationale, the better your chances of being matched to a funder willing to review. Honesty is essential — undisclosed liabilities often surface during due diligence.

Timelines vary by product and complexity. Some working capital facilities can complete in days once information is prepared, while secured or asset-backed solutions may take longer for valuations, legals, or intercreditor steps. Start early to avoid last-minute pressure that risks a weaker outcome.

Typical factors lenders will review

• Arrears size, age, and tax type; TTP status and compliance to date.
• Trading performance, margins, and cash generation over the last 6–12 months.
• Debtor quality, concentration, and payment behaviour (for invoice finance).
• Asset base and existing encumbrances (for asset finance or secured loans).
• Director credit profiles and any County Court Judgments or defaults.
• Sector exposure and sensitivity to economic headwinds.

Costs, terms, and outcomes — setting expectations

• Pricing reflects risk; HMRC arrears may mean higher costs than “prime” scenarios.
• Facilities are usually tailored — amounts, durations, and covenants vary widely.
• No platform can guarantee approval; our goal is to connect you to relevant options fast.

We routinely support professional services firms, including accountants and law practices, where cash flow has tightened because of delayed receivables. If your practice needs sector-specific guidance, see our page on solicitors loans for more context on how financing can align with client fee cycles.

Practical next steps, FAQs, and how to get matched

First, gather your essentials: HMRC letters, TTP schedule, latest management accounts, and bank statements. Summarise — in one page — how arrears arose, what has changed operationally, and how new finance will help you maintain future compliance. This makes discussions faster and more productive.

Next, complete a Quick Quote on BestBusinessLoans.ai. Our AI will assess your profile, including sector, funding purpose, and HMRC context, then introduce you to finance providers who may engage with TTP situations. You can then compare pathways, timelines, and likely documentation.

Finally, stay proactive with HMRC. Keep instalments up to date, file on time, and inform HMRC promptly if circumstances change. Lenders look favourably on companies that communicate early and manage obligations transparently.

Frequently asked questions

Can we apply for finance if we already have a Time to Pay arrangement?
Often yes. Many providers will consider cases where a TTP is agreed and maintained, especially if you can show stabilising cash flow and a plan for future compliance. Each provider’s policy differs, so a tailored introduction helps.

Will a lender pay our HMRC arrears directly?
Some facilities are paid into your business account; others may settle specific liabilities as a condition of drawdown. This depends on product type, risk policy, and affordability. Your broker or lender will clarify if any conditions apply.

What if we’ve missed a TTP instalment?
It is still possible to find support, but it becomes more challenging. Prepare a clear explanation and evidence of corrective action. Communicating with HMRC to re-baseline the plan can help rebuild confidence.

Which sectors are more likely to be approved?
Asset-rich industries and B2B firms with strong debtor books often have more options. We frequently assist manufacturing, logistics, construction, healthcare, and professional services, subject to status and policy.

Do you charge for enquiries?
It’s free to submit a Quick Quote. If you proceed with a lender or broker, fees or commissions may apply; these will be disclosed by the provider before you decide.

Are you regulated and do you provide advice?
Best Business Loans operates as an independent introducer. We do not provide financial advice or lending; we introduce you to providers who can discuss regulated products where appropriate.

Key takeaways

• HMRC arrears and TTP do not automatically rule out funding; transparency and compliance are crucial.
• Products like invoice finance, asset refinance, and secured working capital can support a turnaround plan.
• Our AI-led matching connects you quickly to providers who understand HMRC situations.
• No guarantees — but a well-prepared case and clear cash flow plan can improve outcomes.

Start your eligibility check

It takes minutes to get started. Submit your Quick Quote for an initial match to suitable providers, with no obligation to proceed. Decisions are always yours, and your information is handled securely and confidentially.

Important information and disclaimers

Best Business Loans (BestBusinessLoans.ai) is an independent introducer. We do not offer loans or provide financial advice; we introduce businesses to third-party finance providers and brokers. Any finance is subject to status, affordability, and the provider’s underwriting criteria.

Facilities may be secured on assets or guaranteed; if you do not keep up repayments, your business assets or other security may be at risk. We aim to ensure all communications are clear, fair, and not misleading, and to support compliance with FCA, ASA, and Google advertising principles.

We currently do not support start-ups, sole traders, franchises, property finance, or commercial mortgage applications. Always seek professional advice tailored to your circumstances before committing to any finance.

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Author and page details

Author: UK Commercial Finance Content Team, Best Business Loans

Experience: Content produced with input from our network of UK business finance professionals across asset finance, invoice finance, and working capital solutions.

Updated: October 2025