Corporate Finance
Leonardcurtis
Full Credential Description
The Sheffield-based digital agency faced significant challenges due to the COVID-19 pandemic, which resulted in a drastic decline in demand and the loss of key accounts. By 2023, the agency was grappling with a turnover reduction of approximately £350,000 and an HMRC liability of £323,000. Despite attempts to recover major accounts, the agency remained in a precarious financial position. In February 2025, Leonard Curtis was engaged to address these issues. The team conducted a comprehensive assessment of the agencys financial situation, focusing on working capital challenges and overall viability. They identified a Time to Pay (TTP) arrangement with HMRC as a potential solution to alleviate cash constraints. Leonard Curtis successfully negotiated a 64-month TTP arrangement totaling £323,000, which commenced in April 2025. This agreement included a one-month deferral of the first payment, providing the agency with immediate cash flow relief and the opportunity to stabilize its operations. The tailored solution not only offered the agency much-needed breathing space but also allowed it to focus on recovery and future growth. The successful negotiation of such an extended TTP arrangement, which is rare and contingent on HMRCs discretion, demonstrated the commercial and fiscal viability of the agencys long-term recovery plan.