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HMRC Debt Management

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HMRC Debt Management 

HMRC Debt Management, help & support.

Her Majesty’s Revenue and Customs remain responsible for the collection of debts relating to UK tax including:

  • Income Tax;
  • National Insurance;
  • VAT arrears;  
  • overpayments of a tax credit. 

Owing any tax requires immediate attention when arrears occur. Suppose a Tax is considered a Priority Tax. Then failing to rectify any arrears has a grim outcome.

If your company has outstanding HMRC debts, whether it’s VAT, Income Tax (Pay As You Earn), or National Insurance arrears, then deal with them as soon as possible. This classes of TAX are deemed as ‘Priority Debts‘. The result of failing to pay them is serious and will trigger HMRC to commencing court action or enforcement officers to collect the tax. So Act Fast!

So do not delay. The situation will not get better. For further reading, please click on: ” Why do directors delay taking insolvency advice“?

Taking control of arrears of Tax.

Taking control of your HMRC liabilities is not beyond anybody.

Ensure that demands are then checked carefully from the HMRC.

Then ask yourself:

  • Ensure the figures provided are, therefore, accurate and up to date:
  • Include all legitimate allowable expenses;
  • respond to points raised by HMRC in full?
  • How may I clear HMRC debt?

Suppose any of this information then isn’t exactly right. In that case, it can then lead to miscalculations and sometimes over-estimations of what you should pay.

If unsure about your tax obligations? Then make contact with an accountant who will advise you. Do not take risks or miss lead the HMRC.

Once you have established your Tax liability, then produce a budget to assist. 


Establish accurately monies you receive from your business. Perhaps use an accounting package or a spreadsheet to maintain your business records.

Disposable income 

Once you have established your income, too, therefore, arrive at your disposable income, subtract those expenses considered essential away. The remaining sum is your disposable income.

Ensure the accuracy, as it reflects your available money to repay HMRC.

HMRC understand the requirements needed to live. So it is important not to panic!

Determining essential costs

Expenses you or your business incur each month, mortgage, rent, food, medical support, work and rates remain essential outgoings. You may further have costa you are legally obliged to pay such as leases, HP, Loans, Mobile Phone Contracts.

HMRC Debt Management & Communicating with HMRC

Once you have established an affordable monthly payment, then advise HMRC accordingly while agreeing on a repayment plan.

You may contact HMRC on 0300 200 3300. They accept calls between 8 am, and 8 pm Monday to Friday and 8 am to 4 pm Saturday. At the same time, remaining closed on Sunday and bank holidays.

HMRC have tax years and as such collect tax based yearly. So, work with them and set up a payment plan ensuring closure on each tax year.

HMRC may request an amount that is not affordable. However, maintaining the intent to repay is essential. Do not though avoid your other creditors. Perhaps letting HMRC know in writing on details of your income and essential living cost would be a wise move.

Remain in Contact

Ensure you maintain contact with HMRC at all times ensuring you note dates, the person you spoke with and what subject matter.

Contacting HMRC in advance of missing any payment helps. Making overpayments further improves your situation as it demonstrates to HMRC your intent to resolve tax arrears.

Please NOTE: Avoiding the HMRC will only cause them to proceed to collect. Your silence will not help yours or your businesses situation.

What transpires if you don’t pay your Tax?

HMRC arrears often are collect different from that of an ordinary creditor. HMRC act fast when collecting arrears and structured in their approach. 

Consider, are PAYE arrears pulling your company down? If so, what are options paying PAYE arrears? are available

HMRC recovery:

  • Taking savings.HMRC may take money straight from your savings accounts providing you have £5,000 left.
  • Applying for a County Court Judgement (CCJ)
  • Issuing a magistrates’ court summons;
  • Commencing bankruptcy proceedings when debts total more than £5,000;
  • Using an attachment of earnings when you’re employed.

External support you with Tax arrears?

Available support handling your HMRC arrears:

HMRC Debt Management and Acting promptly on HMRC priority arrears

Never use monies that you are required to pay over to HMRC. Keep paying monthly, avoiding substantial arrears while communicating with HMRC at all times.

While other personal creditors may allow you to pay less formally then avoiding legal action, HMRC remains assured in its approach, collecting overdue Tax.

For further help and support from HBG Advisory:

Request an Essential Directors liability Review.

Please telephone FREEPHONE 0800 612 5448

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