Glossary · UK

What is Business Payment Support Service (Time to Pay)?

HMRC facility allowing businesses and individuals to spread tax payments over time when facing financial difficulty.

Full Definition

The Business Payment Support Service (BPSS), more commonly referred to as HMRC's Time to Pay (TTP) arrangement, allows taxpayers who cannot pay a tax bill on time to agree an instalment plan with HMRC. It covers most taxes including Self Assessment, PAYE, VAT, and Corporation Tax. HMRC assesses ability to pay based on income, expenditure, and assets, and typically expects arrears to be paid within 12 months, though longer periods may be agreed in exceptional circumstances. Interest accrues on the outstanding balance at the HMRC late payment rate (currently 7.25% for 2026/27) but penalties for late payment are generally suspended while a TTP arrangement is in place. Businesses should contact HMRC proactively before a payment deadline passes.