Saving a Domiciliary Care Business: Securing a £238,000 Time To Pay Arrangement with HMRC

Imagine running a care business dedicated to supporting vulnerable people in your community – only to face the threat of asset seizure and closure because HMRC refused to negotiate a Time To Pay (TTP) arrangement. This was the reality for our client, who had successfully operated a domiciliary care business for eight years. Despite securing new local council contracts, a £238,000 PAYE debt left the business struggling to stay afloat. The resulting financial strain jeopardised the company’s survival, and posed a serious risk to patient welfare and the continuity of essential care services. 

In a sector already under immense pressure to meet growing demand, failure was simply not an option. The collapse of the business would have left vulnerable patients without vital home care, and for our client, it would have meant losing everything she had built. Although she had previously defaulted on a payment plan, every attempt to agree a revised arrangement was rejected by HMRC. Exhausted and facing the imminent seizure of her assets under a *Controlled Goods Agreement, she turned to Bell & Company as a final hope. 

*Controlled Goods Agreement Definition: A Controlled Goods Agreement (CGA) is a formal arrangement between a debtor and an enforcement agent. It allows the debtor to retain possession of seized goods on the condition that the debt is repaid under agreed terms. If the debtor defaults, the agent can remove and sell the goods to recover the outstanding balance. 

Breakdown in Negotiations and Creditor Confidence

When our client approached us, she had already spent nearly two years in negotiations with HMRC. Although she had initially secured a Time to Pay (TTP) arrangement, a subsequent default eroded HMRC’s confidence in her ability to maintain future payments. As a result, discussions had reached a stalemate, leaving her with no viable path forward. 

Officers had visited the business multiple times, leaving her anxious and uncertain about the future. During our review, we uncovered the Controlled Goods Agreement. This presented a major complication, adding urgency to the case and requiring careful navigation of strict legal constraints. The discovery highlighted just how risky it can be for business owners to face HMRC action without expert support. 

When negotiations have broken down and enforcement is already in motion, the involvement of a specialist negotiator becomes not just helpful, but essential. 

Our Strategy: Transparency & Commerciality 

Given the severity of the situation, we knew that a simple plea for leniency would not suffice – we had to prove the business was worth saving. Our strategy was to shift the conversation from a debt crisis to a case built on commercial viability. To achieve this, we drew on a deep understanding of HMRC’s Litigation and Settlement Strategy, positioning repayment as the most beneficial outcome for all parties. 

Our approach was founded on transparency and evidence. Rather than simply requesting a new Time To Pay arrangement, we demonstrated precisely how the £238,000 debt could and would be repaid. 

1. Strategic Evidence Gathering: We rapidly assembled detailed documentary evidence, focusing in particular on upcoming council contracts and revenue projections. These were able to substantiate the business’s ability to meet its obligations. 

2. Highlighting Commercial Viability: With this evidence, we were able to present a compelling commercial argument. We showed HMRC that immediate liquidation would not only destroy an eight-year enterprise and cost local jobs, but also yield a poorer financial return. In contrast, approving a Time To Pay arrangement ensured full recovery for the Revenue – a clear win-win. 

3. Rebuilding Trust: This level of structured documentation and professional transparency proved decisive. It succeeded where the client’s previous unsupported attempts had failed, rapidly restoring credibility and enabling constructive negotiations to move forward. 

Bringing Them Back From The Brink

Our strategic, commercially focused approach delivered immediate and transformative results, a true reversal of fortune for our client and her team. After years of stalled negotiations and failed attempts, we successfully overturned an enforcement mandate, marking a crucial turning point in the case. 

Within just two months, we achieved the following: 

• Enforcement Action Averted: The most urgent success was persuading HMRC to withdraw the case from its Enforcement team. This halted all recovery action, deactivated the Controlled Goods Agreement, and removed the immediate threat of asset seizure. 

• Viable Resolution Secured: We negotiated a 10-month Time To Pay (TTP) arrangement covering the full £238,000 liability. This rapid resolution gave the business the breathing space it needed to stabilise operations and focus on continued service delivery. 

• Trust Re-established: Through professional representation and transparent, evidence-based communication, we rebuilt HMRC’s confidence in the client. This restored credibility and paved the way for a successful agreement. 

The Real Victory: Saving a Legacy 

While resolving the £238,000 debt was the immediate objective, the true achievement lay in saving an eight-year-old business, and protecting the livelihoods of the dedicated team behind it. The successful Time To Pay arrangement gave our client the breathing space she needed to secure new contracts, rebuild cash flow, and restore financial stability. 

By the conclusion of the case, the sense of relief was unmistakable. After months of struggling alone against mounting pressure, our client was finally heard, and her business given the second chance it deserved. 

We also acknowledge and thank HMRC for their pragmatic and cooperative approach throughout the final negotiations. Their willingness to engage constructively was instrumental in achieving a fair and sustainable outcome for all parties. 

Michael Withers, Debt Solutions Manager at Bell & Company who worked with the client said of the case, “The client was delighted with the result as she had been trying for a while to get something agreed with HMRC but to no avail…She was extremely appreciative as the business meant everything to her.” 

Our intervention didn’t just manage a debt; it saved a legacy. 

HMRC Coming For Your Business? We Can Help 

We often hear from clients who have been trying – and failing – to negotiate with HMRC for months or even years. In many cases, previous failed TTPs have withered trust and reduced any likelihood for our client to reach an agreement. In these instances, we are the client’s last line of defence. This means we have real-world experience and expertise in bringing businesses back from the brink. 

Don’t risk your business. Contact our specialist team today to see how we can apply a commercial strategy to your specific situation. 

📞 Speak to our team today for a confidential case review and tailored guidance. 

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