If you outstanding tax payments and are unable to pay HMRC, you have a number of options, these should include contacting the HMRC Debt Management and Banking Department to try and set up an affordable payment plan for your tax debts.
Before making contacting with HM Revenue & Customs, regardless if your debts relate to the most common issue of owing VAT to HMRC or any other business tax, it is always advisable to speak to an qualified advisor who has the understands on how HMRC’s ‘time to pay’ process works and has the expertise of dealing with companies in your position.
We have successfully negotiated millions of pounds worth of debt management arrangements for our clients with HMRC and are regarded as an experienced HMRC mediator
HMRC Debt Management
HMRC is responsible for the management of taxes in the United Kingdom. They are also responsible for the collection of taxes owed to the government. HMRC debt management is a process by which HMRC collects taxes owed by an individual or company.
HMRC debt management is when HMRC takes action to collect taxes owed, such as through court action. If you owe taxes to HMRC, you may be able to negotiate with HMRC a payment plan. This can help you to avoid some of the consequences of not paying your taxes, such as penalties and interest charges.
HMRC debt management can be a complex process, so it’s important to seek professional advice if you’re struggling to pay your taxes.
HMRC Debt Management Contact Number
The contact number for HMRC Debt Management helpline is 0300 200 3887.
8am to 8pm, Monday to Friday.
HMRC also offers Agent Dedicated Lines for those who are register as an authorised agent and wish to discuss PAYE, Self Assessment, VAT or tax credit queries for their clients.
What information will you need?
When contacting HMRC, will be need to be prepared in order to give you the best possible chance of negotiating a repayment agreement. You should ensure you have all the following information at hand to ensure a quick resolution:
- Your tax reference
- Your name and address
- The registered name and address of your business
- Details about why you’re struggling to pay your tax bill
- What you’ve done to raise the money
- How much you can pay now
- How long you need to repay the rest
- Information about the company’s assets, cashflow and expenditure
Time to Pay’ Arrangements (TTP)
If you owe money to HMRC, you may be able to set up a ‘time to pay’ arrangement to spread the cost of your repayments over a period of time. This option could be available to you if you’re unable to pay your tax bill in full, and you can’t reach an agreement with HMRC on another way to pay.
Time to pay arrangements are normally set up for a minimum of 12 months, but can be extended if necessary. The amount you agree to pay each month will depend on your individual circumstances and ability to pay. If you’re submitting a self-assessment tax return, you should include details of your time to pay arrangement on your return. You can find more information about setting up a time to pay arrangement on the HMRC website.
HMRC Vat Debt
If you’re a business owner, then you know that one of the most important things to stay on top of is your VAT debt. The last thing you want is to get behind on your payments and end up owing HMRC a large sum of money. Unfortunately, it can be all too easy to let your VAT debt get out of control, especially if your cash flow is tight. If you’re struggling to keep up with your VAT payments and have outstanding VAT payments to HMRC, then it’s important to take action as soon as possible.
The sooner you address the problem, the more manageable it will be. There are a few different options available for dealing with VAT debt, so it’s important to talk to an accountant or financial advisor to see what would work best for your business. Don’t let your VAT debt get out of control – take action today!
What Options are there?
Consider Debt Consolidation?
one option is debt consolidation, this means taking out a new loan to cover your existing debts, therefore simplifying your repayment process. This can reduce the interest payment on debt, but you will need to ensure it is carried out in a strategic manner clear understanding that the business can afford to make the repayments to avoid making your situation worse.
Arrange a Debt Management Plan?
Debt management plans are a formal arrangement between you and your creditors, it allows you to pay off your debts over a period of time. DMP’s offer less protective from creditors than Individual Voluntary Arrangements, meaning that creditors can still take legal action during this process.
Read more: HMRC debt collection process
HMRC Enforcement will take place when negotiations cannot be reached in order to come to an agreement to pay outstanding tax debt between you and HMRC, or if you ignore the debt entirely. Enforcement action by HMRC will be taken to collect the money. This could be in the form of:
- Collecting the tax you owe through your earnings or pension
- Asking a debt collection agency to collect the tax
- Removing and selling possessions to recover the loss
- Taking money directly from a bank or building society account
- Taking you to court
- Closing down your business
Enforcement action must be avoided at all costs, the first thing you need to do to suspend this action is contact HMRC as soon as payment has been missed, or before the payment deadline if you know you’re going to be unable to pay.
HMRC’s action to recover outstanding tax debts costs costs money, so it will be avoided if there is a realistic chance of HMRC collecting the debt due. You may feel feel anxious about talking to HMRC about tax, but delaying the call in the hope that things will improve is likely to make matters worse.
If you may have questions, or just be unsure about the process in order to dealing with HMRC Debt Management Team, simply complete the online enquiry form and one of our experts will give you a call back to talk though your options. Our free, confidential helpline is available to anyone struggling with company debt, as we have experience of dealing with HMRC and tax arrears.
With over three decades of experience in the business and turnaround sector, Steve Jones is one of the founders of Business Insolvency Helpline. With specialist knowledge of Insolvency, Liquidations, Administration, Pre-packs, CVA, MVL, Restructuring Advice and Company investment.