Once it’s in place, HMRC can only cancel a Time to Pay arrangement under exceptional circumstances. However, if you do not stick to the agreement or fail to make ongoing tax payments when they’re due, all that changes. HMRC can then cancel the arrangement and add on a penalty as well.
This is a situation you want to avoid as it can escalate quickly. The worst-case scenario is that HMRC issues you with a Winding Up Petition to force your company into liquidation.