Case study
Case study: Five-year Time to Pay agreement secures future for Yorkshire and North East recruitment firm
Background
A Yorkshire and North East based recruitment company faced significant financial challenges following a 35% reduction in vacancies in their sector. The decline in available placements had a direct impact on revenue. This coupled with the rise in National Insurance contributions increased employment costs and further pressured cashflow and margins.
The business had already maximised its overdraft facility and was faced with severe liquidity constraints. In addition, an outstanding legal dispute involving a company that had since gone into administration created further uncertainty, as recovery of the owed debt appeared unlikely.
Challenge
With revenues down and cash flow under strain, the company struggled to meet ongoing tax commitments. Mounting PAYE and VAT arrears created a pressing need for a realistic repayment solution that would allow the business to maintain operations and protect jobs.
Solution
Business Advisory Analyst Shamana Rani led the engagement. After conducting a detailed review of the company’s financial position, the team engaged directly with HMRC to negotiate a sustainable repayment plan. A 62-month Time to Pay (TTP) arrangement was successfully secured, covering a total liability of £325,048.43 with manageable monthly instalments of £6,200.
Outcome
The 62-month TTP agreement provided crucial breathing space, enabling the company to stabilise cash flow and continue trading. The arrangement safeguarded 16 jobs and restored confidence in the business’s future. The client was extremely pleased with both the outcome and the speed of the resolution achieved in just one month.
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