I can’t pay my tax

A debt solution may not be suitable in all circumstances. Fees may apply and will affect your credit rating

If you can't pay your tax bill, the worst you can do is ignore the problem. HMRC will work with you if they see that you have acted promptly to deal with the arrears.

If you can’t pay your tax bill on time, HMRC recommends the following:

  • Call as soon as possible when you realise you cannot pay your tax debts
  • Provide your tax reference number
  • Identify what tax you are struggling to pay and why
  • Disclose what steps you have taken to try and raise the money to pay your bill
  • Identify how much you can pay now and how long you may need to pay the rest
  • Be able to provide details of your income and expenditure, your assets and liabilities
  • What steps you are taking to get your tax situation back in order

Time to Pay Plan

The Business Debt Advisor has helped numerous businesses put together Time to Pay plans to HMRC. The time negotiated has differed with each case but it is unusual to be able to get more than 12 months to clear arrears. You will be charged interest but it may be possible to avoid additional charges if you act quickly enough. A Time to pay plans is set up using your Government Gateway account, and can occur if you:

  • have filed your latest tax return
  • owe less than £30,000
  • are within 60 days of the payment deadline
  • plan to pay your debt off within the next 12 months or less

If you owe more than £30,000 or need longer to pay, please contact us to devise a plan to submit to HMRC

Other Debt Options

If your problems extend beyond tax debts and you have other business and personal debts, there are other options that may be more appropriate such as an IVA.  If you are self-employed there is more information at IVA for Self Employed. All debt solutions should be very carefully considered. Our team will provide you with the most appropriate advice taking into account your circumstances. There are a range of options which include IVA for Self Employed, Debt Management and Bankruptcy which are covered on this site.

Find out how we can help your business

We provide the most comprehensive debt advice and support for individuals and business owners. Our experienced team offers a personal approach to finding solutions to your debt challenges.