Small Healthcare Recruitment Agency Helped With HMRC Arrears

The Challenge

A small healthcare recruitment agency, run by a mother and daughter team, faced a severe financial crisis. In late 2024, the family suffered two bereavements, which diverted the directors’ attention and caused sales to fall. This led to a critical cash shortage, and the company was unable to pay its tax contributions, accumulating £68,000 in arrears for PAYE/NIC and VAT. The company had previously attempted to manage this with HMRC and even secured additional lending to make payments, but the combined burden of loan repayments and HMRC contributions caused cash flow to dry up again, leading HMRC to “fail” the arrangement. The company was now under increasing pressure from HMRC, with its corporation tax liability sent to a debt collection agency, putting the business at immediate risk.

The Solution

In March 2025, the director found RMT KSA’s website and immediately sought help. After a prompt consultation, RMT KSA was appointed to assist with the negotiations. The team quickly prepared detailed financial forecasts using information provided by the company. These forecasts were crucial as they allowed RMT KSA to calculate a level of repayment that was both acceptable to HMRC and sustainable for the company. The solution was to negotiate a new, more manageable “Time to Pay” (TTP) arrangement with HMRC that would allow the company to repay the debt over a longer period. This approach would help the company avoid further enforcement action from HMRC and debt collectors.

The Results

In a little over four weeks, RMT KSA successfully negotiated a new TTP deal with HMRC. The company was able to arrange to repay the £68,000 over 30 months, a much more manageable timeframe than the previous arrangement, with only a small upfront payment required. RMT KSA also secured a second TTP deal for the company’s corporation tax liability. This swift and effective negotiation prevented any further enforcement action from HMRC and the debt collection agency. The company can now focus on stabilizing its business and returning to profitability without the constant stress of aggressive creditor action. This case demonstrates that with expert guidance and a well-structured plan, a business can successfully negotiate a manageable payment plan with HMRC, even after a previous arrangement has failed.