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Case study: Securing a 92-month Time to Pay arrangement for a North East construction business
Background
• Incorrect legal advice led to contract termination, costing c.£450,000
• Departure of key income generator reduced new business pipeline
• Offered repayment terms capped at 12 months previously
A North East based construction company had endured a difficult period driven by external pressures. Incorrect legal advice given in 2024 resulted in local authority intervention and ultimately the suspension and termination of a key contract at a cost of approximately £450,000. The subsequent departure of a key income generator, who had been central to generating new work, further compounded matters, reducing the pipeline and accelerating a decline in revenue.
Delayed payments from clients, combined with reliance on an existing invoice discounting facility, placed the business under sustained cash flow strain. With HMRC liabilities mounting and the company unable to keep pace with its obligations, external specialist support was needed.
Our Approach
From the outset, it was clear that the situation required careful handling. A Field Force Officer from HMRC had already attended the client’s premises and, on that visit, offered a maximum repayment term of just 12 months. That position was neither sustainable nor appropriate given the company’s circumstances, and Leonard Curtis challenged it directly.
Through detailed and measured negotiations with the Field Force Officer, the team presented a clear picture of the company’s limited asset base and demonstrated why a 12-month term would place the business under impossible pressure. After those discussions, the Officer agreed to hold off on enforcement action and allow the matter to be passed to a different team within HMRC.
The engagement ran from introduction in January 2026 through to completion in May 2026. Throughout that period, Leonard Curtis maintained consistent and proactive communication with HMRC, building confidence that the business was engaging in good faith and that any arrangement proposed would be credible and sustainable. The thoroughness of the preparation and the strength of the case put forward were central to the outcome.
The result was a formal Time to Pay arrangement covering £176,000 of HMRC liabilities, structured over 92 months through to February 2034. Against the backdrop of an initial HMRC position of just 12 months, this outcome represented a significant turnaround.
The arrangement provided the business with the breathing space it needed, stabilised cash flow, and protected five jobs. For a business that had faced genuine uncertainty, this was a meaningful and lasting result.
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Leonard Curtis is a trading style of Reach Commercial Finance Limited, registered at Riverside House, Irwell Street, Manchester, M3 5EN. Company Register number is 09056450. Reach Commercial Finance Limited is authorised and regulated by the Financial Conduct Authority, FRN: 753686. Reach Commercial Finance Limited is an authorised credit broker and not a lender. We work with an unrestricted number of lenders to find a potentially suitable arrangement for your consideration. ICO registration ZA069234 and you can check via www.ico.org.uk. We will receive commission from lenders. Different lenders pay different amounts depending on different commission models. For transparency we work with the following commission models: fixed fee, fixed rate of commission, percentage of the amount you borrow and rate for risk (this is based on the risk profile of the business). Further details of the commission model, calculation and amount will be disclosed to you throughout your customer journey. Privacy notice.
Leonard Curtis Legal Limited is a limited company, registered in England and Wales with registered number 09820186. Registered office: Riverside House, Irwell Street, Manchester M3 5EN. Leonard Curtis Legal Limited is registered with the Solicitors Regulation Authority with number 626004.