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Time To Pay Arrangements

Time to pay arrangements

You can use a Time To Pay arrangement where you are trying to keep your business going and avoid all the consequences of a formal insolvency like liquidation or bankruptcy.

The usual first creditor to ask for time to pay is HM Revenue and Customs for VAT, PAYE, Income Tax and Corporation Tax arrears. They will consider letting you spread built up arrears over many months. Usually this is up to maximum of 12 months but since Covid this may be for a longer period than that in exceptional circumstances. HM Revenue and Customs may ask you to do a cash flow forecast to prove you can afford to make the payments and that you can maintain new payments as they fall due.

You can then ask other creditors for help with time to pay including bank loans, business rates and utilities and suppliers.

This financial breathing space can help you to sell spare assets (or refinance them) and collect in debtors to improve your business finances.

If you need help with a Time To Pay we can deal with your creditors for you and help you with your cash flow forecasts.

ADVANTAGES & DISADVANTAGES​

Advantages to Time To Pay
  1. There is no formal insolvency, so it is confidential between you and your creditors.
  2. You can keep the business going and customers do not know nor do employees.
  3. It means transaction such as preferences or overdrawn loans accounts do not have to be immediately repaid.
  4. There is no report on the director’s conduct to the Insolvency Service so no risk of a director’s ban.
Disadvantages of Time To Pay
  1. You may still be under a lot of pressure financially.
  2. If you do not keep up with the agreed payments your business may then be pushed into liquidation.
  3. It is not good if the financial position gets worse. There is no defence to say you did not know it was already bad because of course you had arranged a Time To Pay.

Conclusions

We meet the same problems all the time for business in trouble and you are not unique, and you are not alone.
What does make a difference is recognising early on that you need help – the sooner you get help the more chance of saving your business.

David Kirk

Author

David Kirk ACA FABRP

Tel: 01392 474303

Email: david@kirks.co.uk

Just a quick email to say a heartfelt thank you for your very calm, considered, expert advice regarding my circumstances on Tuesday. Things looked bleak before you explained my options much more clearly, in simple layman’s terms.
Rob Elliott
Kirks and their team recently advised me on the Members Voluntary Liquidation (‘MVL’) process. They made it very simple for me to understand the process, they kept me up to date with progress throughout the liquidation and expertly answered any queries I had. All interactions with Kirks were highly professional and it gave me confidence that my liquidation was safe in their hands. They promised a straightforward process and certainly delivered – I highly recommend the team at Kirks to assist with your MVL.
Daniel
Kirks provided a very efficient and cost effective service. They offered support and advice throughout the process and made prompt payments. It was a very professional and helpful service.
Richard
We have just had the pleasure of working with Kirks, to complete the closure of my company, everything went smoothly and professionally. I would recommend this company and the staff very very helpful and quickly finalised everything. Thank you Kirks.
Carol Hill
I found you very professional in all my dealings with you. You were knowledgeable and dealt with my case expediently. You answered all my queries on the way in full and everything happened as you said it would in he time frames you outlined in the very beginning. I would have no hesitation in commending you and your company to others
Allan M
We appointed Kirks to manage the process of an MVL when we had ceased trading and found their service to be very straightforward and thorough. A fixed fee arrangement provided us with reassurance and David explained the process clearly to us at the outset. A very professional service all round
David MillsDM digital Solutions
Thanks for all your help guys and for being quick in replying to phone calls and emails
Anon
I have found Kirks Insolvency to be very reliable in terms of their dealings with us as their customers. They are clear in terms of the process and what it entails and are very prompt when it comes to communications. I would recommend their services.
Michale P
I was very impressed with the speed and efficiency with which Kirks undertook the MVL and their help and assistance in explaining the process and resolving any queries.
Anon
Before meeting with Kirks, I had already met with a number of other insolvency practitioners none of whom I considered to be as clear cut and up front as David. The liquidation was executed quickly and professionally and I really am happy that I have done it.
Anon
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Just a quick email to say a heartfelt thank you for your very calm, considered, expert advice regarding my circumstances on Tuesday. Things looked bleak before you explained my options much more clearly, in simple layman’s terms.
Rob Elliott

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David Kirk

Licensed Insolvency Practitioner

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