Comprehensive strategies to handle VAT, PAYE, and Corporation Tax arrears. Learn about Time to Pay arrangements, enforcement action, and professional solutions.
HMRC debt is one of the most serious financial challenges UK businesses face. With over £42 billion in outstanding tax debt across the UK, you're not alone in struggling with VAT, PAYE, or Corporation Tax arrears. However, HMRC has extensive powers and won't hesitate to use them if you don't take action.
Ignoring HMRC debt can lead to bailiff action, bank account freezing, director disqualification, and ultimately company closure. The sooner you act, the more options you have.
Most common HMRC debt. Quarterly returns with immediate payment requirements. HMRC can issue winding-up petitions for unpaid VAT.
Employee tax and National Insurance. Monthly payments required. HMRC treats this as "trust money" and pursues aggressively.
Annual company tax on profits. Due 9 months after year-end. Interest and penalties apply from day one of late payment.
Open all HMRC letters immediately. Note deadlines and payment demands.
Include principal, interest, and penalties. Check your HMRC online account.
Determine what you can realistically pay and when.
Call the Business Payment Support Service: 0300 200 3835
Contact a licensed insolvency practitioner or tax specialist.
Understand what HMRC can seize and take protective measures.
A Time to Pay (TTP) arrangement allows you to spread your HMRC debt over manageable monthly payments. It's often the first and best option for businesses struggling with tax arrears, but approval isn't guaranteed.
Cash flow forecast, business plan, and payment proposal
Call Business Payment Support Service with your proposal
Make payments on time and stay current with new obligations
HMRC follows a structured approach to debt recovery. Understanding this timeline helps you take action before it's too late.
HMRC sends payment demands and reminder letters. Interest and penalties start accruing immediately.
HMRC issues formal demand notices and may begin enforcement proceedings. Time to Pay arrangements still possible.
HMRC can use bailiffs, freeze bank accounts, or issue winding-up petitions. Options become severely limited.
Can seize business assets, vehicles, and equipment to recover debt
Direct debit authority to take money from business accounts
Court application to close your company and liquidate assets
Personal liability and ban from being a company director
Can pursue directors personally in certain circumstances
Forced liquidation and loss of business, jobs, and reputation
Don't wait until it's too late. Our emergency HMRC debt specialists can often halt enforcement action within 24 hours.