HMRC – Friend or foe?

Are you using HMRC as a primary funder?


It is an open secret that HMRC were persuaded to take a soft line on ‘time to pay’ arrangements during the credit crunch. It was a welcome respite for small business owners – which in many cases became a primary source of business funding.


The tax man is a great form of finance when he is in a good mood, but is under increasing pressure to start recovering the alleged £35 billion of missing payments (about £3 billion of which relate to time to pay arrangements).

The role of HMRC isn’t to help small business – it is to collect taxes.

The official rules on time to pay can be found here. From customer experience the reality is:

  • It is increasingly difficult to make contact with anyone who can/will help.
  • They will try every possible way to collect before making an arrangement.
  • Where arrangement are granted, they are seeking to limit them to a few months.
    Payments is strictly by direct debit.
  • The letters keep coming, even when the arrangement is in place.
  • There as zero tolerance in the event of default.

And now the good news!

The market for alternative business funding is alive & well, including ‘distress product’ where you might be experiencing short term difficulty.

Professional business funding has come home! talk to a bank, or talk to us – Let HMRC collect taxes!