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Tax Arrears Payment Plan

If you find yourself with arrears of tax debts, the worst you can do is ignore the problem. The Revenue will work with you if they see that you have acted promptly to deal with the arrears.

Strategy for dealing with HMRC

HMRC have released guidance detailing what to do if you can’t pay your tax bill on time which recommends the following:

  • Ring as soon as possible when you realize 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

Help with a 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 to 18 months to clear arrears. You will be charged interest but it may be possible to avoid additional charges if you act quickly enough. There are charges that will apply and these depend on the amount of work required.

Other Options

If your problems extend beyond tax debts and you have other business and personal debts, there are other options which may be more appropriate such as an IVA.  If you are self employed there is more information at IVA at Self Employed. 

Important Information

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. If your debts are under £20,000 and you assets worth less £1,000, a Debt Relief Order  might be appropriate

If you've read through our section and feel like you would like some further information, please call us on our 0333 9999 600 and one of our advisors will give you the right help and advice based on your individual circustance.