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HMRC Debt Help UK Guide 2025

Struggling with HMRC debts? Learn your options, understand Time to Pay arrangements, and get expert help to resolve your tax problems.

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Types of HMRC Debts

Understanding the different types of HMRC debts is crucial. Each has different implications and resolution options.

PAYE

Employee Taxes

Income Tax and National Insurance contributions deducted from employee wages. One of HMRC's highest priorities.

Preferential debt in insolvency

VAT

Value Added Tax

VAT collected on sales but not yet paid to HMRC. Can accumulate quickly during cash flow problems.

Preferential debt in insolvency

Corporation Tax

Company Profits

Tax on company profits. Due 9 months and 1 day after your company year end.

Non-preferential unsecured debt

CIS

Construction Industry

Construction Industry Scheme deductions. Subcontractors must register and meet strict filing requirements.

Monthly filing mandatory

Self Assessment

Personal Tax

Personal Income Tax liabilities for company directors. Can include Class 2 and Class 4 National Insurance.

Personal liability separate from company

Penalties & Interest

Additional Charges

Late payment penalties and interest can quickly exceed the original tax debt. Act fast to minimise costs.

Interest accrues daily

Your Options

How to Resolve HMRC Debts

From Time to Pay arrangements to formal insolvency procedures, explore your options for resolving HMRC debts.

1

Time to Pay Arrangement

Best for: Businesses with temporary cash flow issues

HMRC's official Time to Pay scheme allows you to spread tax payments over extended terms. We negotiate on your behalf to secure the best possible arrangement.

  • Interest may be frozen
  • Avoids formal insolvency
  • Fixed monthly payments
  • Protects credit rating
2

Company Voluntary Arrangement (CVA)

Best for: Businesses with multiple creditors and larger debts

A formal agreement to pay creditors (including HMRC) a reduced amount over time. HMRC must agree to the proposal for it to be approved.

  • HMRC bound by agreement
  • Company continues trading
  • Debt reduced on completion
  • Creditor pressure stops
3

Administration

Best for: Companies facing HMRC enforcement action

Provides immediate protection from creditor action, including HMRC enforcement. An administrator manages the company while a rescue plan is implemented.

  • Automatic stay on action
  • HMRC negotiations possible
  • Time to rescue business
  • Professional management

HMRC Demanding Payment?

Don't face HMRC alone. Get expert help negotiating Time to Pay arrangements and resolving your tax debts.

Act Now - Interest Accrues Daily

Every day you wait, HMRC interest and penalties increase. The sooner you act, the more money you save.

All consultations strictly confidential. We act for you, not HMRC.