Key Points
- PKF Littlejohn Advisory has officially launched a new tax arrears solutions service aimed at businesses struggling with tax liabilities.
- The service is designed to help companies negotiate realistic and affordable repayment plans via HM Revenue & Customs’ “Time to Pay” framework, covering VAT, PAYE, National Insurance and Corporation Tax.
- The service will be managed from PKF Littlejohn’s Manchester office, which has recently expanded with four senior hires: partners Paul Reeves, Stephen Clancy, Paul Smith and director Mike Lee.
- Paul Reeves emphasised that the process will go beyond simply negotiating repayment: the team will investigate the business’s total indebtedness and assess future trading prospects to present a sustainable plan to HMRC.
- Mike Lee noted that the service responds to rising cost pressures on UK firms and the reality that some may need to delay or restructure tax payments to continue trading and protect jobs.
- The initiative strengthens PKF Littlejohn Advisory’s broader support offering, especially for businesses under financial pressure; the firm already lists the service under its advisory & restructuring suite on its website.
What has been announced?
In a move to bolster support for businesses facing tax-liability challenges, accounting and advisory firm PKF Littlejohn has unveiled a dedicated Tax Arrears Solutions – Time to Pay service. As set out by Lewis Catchpole of Accountancy Today, the service aims to help companies negotiate repayment arrangements with HMRC that are realistic and manageable in light of ongoing economic pressures
Where and via whom is the service being delivered?
The service will be led from PKF Littlejohn’s Manchester office, which has recently been bolstered by the appointment of four senior professionals: partners Paul Reeves, Stephen Clancy and Paul Smith, alongside Mike Lee as director.
Both Reeves and Lee bring experience from the government’s original Small Business Service Company Rescue Pilot scheme, which ran between 2001 and 2023 and informed the current Time to Pay framework.
Why is this service being offered now?
According to PKF Littlejohn, many UK businesses are under mounting cost pressures, struggling to service tax liabilities such as VAT, PAYE, National Insurance and corporation tax. In this context, HMRC’s Time to Pay facility can become a vital tool for survival, restructuring, and protecting employment. Reeves observed: “Time to Pay can be the difference to help businesses stay afloat, to restructure and to secure their future.”
Mike Lee added: “Companies throughout the UK and across almost every sector are struggling with rising costs and other pressures. While no business wants to be in a position where they are missing or delaying payments to HMRC, the reality is that, for some companies, it can be the only option to continue trading and preserve jobs.”
How will the process work?
Unlike some advisory services that simply liaise with HMRC on repayment terms, the PKF Littlejohn service offers a more holistic review of the business’s tax-arrears position. Specifically:
- The team will assess VAT, PAYE, National Insurance and Corporation Tax liabilities.
- They will evaluate the company’s trading prospects, immediate and future performance.
- They will review recent VAT submissions to identify potential over-declarations or overpayments.
- Having formed a detailed picture, the advisory team will negotiate with HMRC to arrive at a loan or payment plan that is realistic given the business’s circumstances and in doing so give HMRC greater confidence in the plan’s viability. Reeves emphasised: “Using a trusted, expert firm … will give HMRC further confidence in the plan.”
Who is likely to benefit from this service?
The offer is aimed at businesses across the UK that are experiencing tax-arrears issues whether due to cash-flow constraints, rapid increase in UTR liabilities, or other trading difficulties. The Manchester base suggests a particular focus on Northern UK clients, but the service is not geographically limited. BusinessMole’s report echoes this, describing the service as “aimed at supporting struggling businesses with their tax obligations.”
What’s at stake for businesses and advisers?
For a business, entering a time-to-pay arrangement without careful planning can risk enforcement action from HMRC, late-payment penalties or worse insolvency. The launch of this advisory offering reflects an understanding that many firms need more than a simple negotiation with HMRC: they require a credible business case, backed by professional advice, to rehabilitate their trading position while meeting obligations.
For advisers, this development underscores the growing demand for tax-arrears planning and corporate restructuring expertise. For PKF Littlejohn, it broadens the firm’s advisory and restructuring toolkit and may serve as a differentiator in a competitive market. As noted, the service is listed under their Advisory & Restructuring services.
How does this fit into the broader landscape?
In recent years, HMRC’s Time to Pay facility has become a key instrument for dealing with tax arrears for large and small firms alike. By adding a turnkey advisory wrapper, PKF Littlejohn is positioning itself to capture a segment of businesses that require a more structured intervention.
Additionally, the emphasis on reviewing VAT submissions for over-payments suggests that the firm is playing a dual role identifying cash refunds as well as structuring repayment plans, thereby offering potential value beyond debt restructuring.
Given the current UK economic climate with inflationary pressures, labour-cost growth and uncertain trading conditions a service like this may become increasingly relevant to companies in sectors under stress.
What should businesses do next?
Firms facing tax arrears should review whether they have realistic repayment plans in place, whether their trading prospects support continued servicing of that debt, and whether they are inadvertently missing opportunities (for instance, via VAT over-payments). Engaging expert advisers early particularly those familiar with HMRC’s processes and enforcement thresholds can improve the chance of successful outcomes and may reduce risk of aggressive action by HMRC.
For training and development purposes, finance teams may benefit from brushing up their knowledge in areas such as tax-compliance risk, restructuring, cash-flow modelling and liaison with revenue authorities areas that would fit under the Business Training & Leadership and Audit, Tax & Accounting programmes at our institute.
The launch of PKF Littlejohn’s tax arrears solutions service signals a proactive response to increasing business stress in the UK tax environment. By offering a packaged service that combines debt-assessment, trading-prospect review and negotiation support under HMRC’s Time to Pay framework, the firm is aiming to help companies not just survive but reposition themselves for future trading. With senior hires and a Manchester-based launch point, this is a service to watch for finance leaders, business owners and advisers alike.
If your organisation is navigating tax-arrears issues or you want to up-skill your team in areas like tax compliance, restructuring, and cash-flow management, our Audit, Tax & Accounting and Business Training & Leadership programmes may be worth exploring.