HMRC has more authority to recover monies owed to them than other business creditors. If your company has HMRC debts it’s crucial to act quickly, therefore, as they could forcibly close it down using a winding-up petition if they believe it’s insolvent.
Their powers of debt enforcement leave your business at considerable risk, but you may be able to negotiate a short-term instalment plan to repay your arrears. The HMRC Time to Pay (TTP) scheme allows eligible businesses to bring their tax affairs back into line, typically over three months or more.
Depending on your situation and whether your company has other debts, it may provide a way to make your business solvent again before closing it down. You’ll need to support your application for a Time to Pay arrangement with cash flow and sales forecasts that demonstrate that you can afford to repay for the full term, however.