Business Debts or Tax Debts
National Debt help for tax debt run up through self-employment or a small business
Income Tax (PAYE), National Insurance or VAT arrears are all classified as priority debts – meaning they take precedence over non-priority debts (which include credit card debts and payday loans).
You should seek debt help for these debts on an urgent basis. Any delay may lead to court action or the arrival of bailiffs. You should also be aware that if you owe more than £5,000, HMRC are able to begin bankruptcy proceedings.
Worried about debts that won't go away?
Debt help tips for tackling business/tax debt:
- Double check that the amount being asked for is correct. It’s a good idea to run through the figures you’ve submitted for your income and outgoings (you may want to seek debt help from an accountant).
- Before being able to make a repayment proposal, you’ll need to know how much you can afford to repay. To come to a figure, create a personal budget that lists your household income and expenditure.
- Be open and honest with HRMC and try to inform them ahead of time that you’re unable to pay your tax bill. Contrary to popular belief, HMRC advisors are understanding, although you will be asked why you’re unable to pay your tax bill on time.