[YOUR COMPANY NAME]
[REGISTERED OFFICE ADDRESS LINE 1]
[REGISTERED OFFICE ADDRESS LINE 2]
[POSTCODE]

Tax reference: [UTR / VAT NUMBER / PAYE REFERENCE]
Date: [DD MONTH YYYY]

HM Revenue and Customs
Debt Management
BX9 1AS


Dear Sir / Madam,

Time to Pay request — [VAT / PAYE / CORPORATION TAX] liability of £[BILL AMOUNT]

I am writing on behalf of [YOUR COMPANY NAME] (UTR [UTR]) to request a Time
to Pay arrangement in respect of the [TAX TYPE] liability of £[BILL AMOUNT]
which became due on [DUE DATE].

The reason we are unable to settle this liability in full on the due date is
[BRIEF, FACTUAL EXPLANATION — e.g. "an unexpected delay in receipt of two
significant client payments totalling £XX,000, both of which are now confirmed
for receipt within the next 30 days"]. The underlying business is trading
profitably and the cash flow gap is short-term in nature.

We propose the following instalment plan:

  • An initial payment of £[INITIAL AMOUNT] on [DATE] (within the next 7 days)
  • [NUMBER] further monthly instalments of £[MONTHLY AMOUNT] payable on the
    [DAY OF MONTH] of each month, commencing [FIRST INSTALMENT DATE]
  • Final balancing payment of £[FINAL AMOUNT] on [FINAL DATE]

Total proposed term: [PROPOSED INSTALMENT TERM] months.

This proposal is supported by our most recent management accounts and our
13-week cash flow forecast, copies of which I would be pleased to provide
on request. We confirm that all subsequent [TAX TYPE] returns will be filed
and paid on time during the arrangement.

We understand that interest at the prevailing HMRC rate (currently 8.25%
per annum) will continue to accrue on the outstanding balance for the
duration of the arrangement, and that any failure to meet an instalment
will entitle HMRC to cancel the arrangement and pursue the full balance.

I would be grateful if you could confirm acceptance of this proposal in
writing, or contact me on the details below to discuss.

Yours faithfully,



[NAME]
[POSITION — e.g. Director / Finance Director]
[YOUR COMPANY NAME]
[EMAIL]
[DIRECT PHONE]


--
Notes for use:
1. For VAT debts under £50,000 you can normally set up a Time to Pay
   arrangement online without sending a letter — see gov.uk/difficulties-paying-hmrc.
2. For Self Assessment debts under £30,000 the same online route applies.
3. Above those thresholds, or for PAYE and Corporation Tax, you will need to
   contact the Business Payment Support Service on 0300 200 3835 — this letter
   is best used as a written follow-up confirming what was agreed by phone.
4. Always include a credible reason and a realistic instalment plan; HMRC is
   substantially more likely to agree where the proposal is supportable by
   accounts and forecasts.