With the critical festive trading period looming and imminent winding-up action from HMRC, the owners of a national hospitality group turned to FRP Advisory for urgent restructuring support.
Case Study
FRP Advisory secures HMRC Time to Pay agreement safeguarding the future of a national hospitality group and saving 300 jobs.
Published:
13 January 2026
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300 jobs saved as FRP secures HMRC Time to Pay agreement
Background
Like many sector operators, the Group faced rising operating costs including soaring raw product pricing, higher employer NIC contributions and increased minimum wages while footfall declined across several sites. This eroded profitability and cashflow leading to HMRC arrears.
HMRC had escalated the matter to debt management, and the Group feared a winding up petition could immediately halt trade.
Having restructured parts of the business to restore profitability, cash flow remained constrained. The Group approached FRP to assist in considering options negotiating a time to pay (“TTP”) for £2m of liabilities.
Although individual sites operated through separate subsidiaries, a group VAT registration meant all entities were jointly and severally liable for the VAT debt putting the entire Group at risk.
Action
FRP worked closely with management to review cash flow forecasts, assess recovery plans, and evaluate both solvent and insolvent options. The analysis indicated a viable business existed, provided short-term cash flow support could be secured to allow the plan to be implemented.
Upon careful consideration with management of the alternatives available, it was determined that initiating discussions with HMRC to secure a Time to Pay (TTP) arrangement would be the most appropriate course of action. This would provide the Group the breathing space to finalise and deliver the recovery plan and give an opportunity to secure the best outcome for the Group, HMRC and the wider stakeholder base including the protection of c300 jobs within an already struggling sector.
FRP engaged with HMRC to negotiate a Time to Pay arrangement, presenting a detailed repayment proposal and demonstrating why the TTP offered the best outcome for HMRC, the Group, and its wider stakeholders.
Outcome
FRP’s specialist TTP team successfully secured a 20-month repayment agreement with HMRC, providing the Group with vital breathing space to implement its recovery plan.
A Time to Pay arrangement can be a lifeline for businesses facing temporary financial pressures. While it doesn’t remove the tax debt, it can prevent enforcement action and provide vital time to stabilise cash flow. Acting early, staying compliant, and presenting a realistic plan are key to securing HMRC support.
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