Owing money to HMRC can feel overwhelming, especially when penalties and interest keep adding up. You are not the only person in this situation, and there are real solutions available. Whether you have self-assessment arrears, VAT debt, or PAYE obligations, we can help you find a way forward.
HMRC debt is one of the most stressful types of debt to deal with. Unlike other creditors, HMRC has stronger enforcement powers and can act more quickly to recover what is owed. Tax arrears can build up fast, particularly if you are self-employed or running a business, and the added penalties and interest can make the situation feel impossible to resolve.
The good news is that HMRC debt help is available, and there are more options than most people realise. From Time to Pay arrangements directly with HMRC to formal debt solutions like IVAs that can include your tax debt, taking action early gives you the best chance of a positive outcome. You do not have to face this alone.
HMRC collects many different types of tax. Understanding which debts you have is the first step towards finding the right solution.
Unpaid income tax from self-assessment returns, including any penalties and interest that have been added. Common for self-employed workers and people with additional income sources.
Outstanding Value Added Tax owed by VAT-registered businesses. HMRC takes VAT debt seriously as the money is collected on their behalf by your business.
Employer PAYE obligations that have not been paid. This includes income tax and National Insurance contributions deducted from employees but not passed to HMRC.
Unpaid corporation tax owed by limited companies. Directors may face personal liability in some cases, especially if HMRC believes there has been neglect or fraud.
Amounts HMRC has overpaid you in tax credits that they are now asking to be repaid. These can be included in certain debt solutions.
Late filing penalties, late payment surcharges, and interest charges that have been added to your original tax debt. These can often exceed the original amount owed.
A Time to Pay arrangement is an agreement with HMRC that allows you to pay your tax debt in instalments over a set period. This is often the first option to explore if you are struggling with HMRC arrears.
Gather your information
Know exactly how much you owe, including any penalties and interest. Have your income and expenditure details ready.
Contact HMRC
Call the HMRC Payment Support Service or set up a plan online for eligible self-assessment debts.
Propose a payment plan
Be realistic about what you can afford. HMRC will review your finances and agree a monthly amount.
Keep to the agreement
Make every payment on time and file all future tax returns by the deadline. Missing payments could void the arrangement.
If your HMRC debt is part of a bigger financial problem, an Individual Voluntary Arrangement can provide a structured way to deal with everything together.
Not sure if an IVA is right for your HMRC debt?
Get free adviceHMRC has more enforcement powers than most creditors. Understanding what they can do helps you see why acting early matters so much.
HMRC can instruct enforcement agents to visit and collect payment or take goods to sell.
Using Direct Recovery of Debts, HMRC can withdraw funds from your accounts with limited notice.
HMRC can petition to make you bankrupt (or wind up your company) to recover what is owed.
A CCJ can be registered against you, which will appear on your credit file for six years.
HMRC can secure the debt against your home, meaning it must be repaid if the property is sold.
HMRC can contact your clients or customers directly and ask them to pay your debt from money they owe you.
Even if HMRC has already started enforcement action, it is not too late to get help. Entering a formal debt solution such as an IVA legally stops HMRC from taking further action against you. The sooner you act, the more choices you have. We are here to help you understand what is possible and find the best path forward for your situation.
Dealing with HMRC on your own can feel intimidating. Our experienced team understands how HMRC operates and can guide you through the process of finding the right solution for your tax debt.
Self-employed workers
Freelancers, contractors, and sole traders with self-assessment tax arrears that have built up over time.
Small business owners
Company directors dealing with VAT debt, PAYE obligations, or corporation tax arrears.
People with multiple debts
Anyone who owes HMRC alongside credit cards, loans, or other unsecured debts.
Those facing HMRC enforcement
People who have received enforcement letters, bailiff notices, or threats of insolvency proceedings from HMRC.
Whether you owe HMRC for self-assessment, VAT, or PAYE, there are solutions available. Our free assessment takes just 2 minutes and can help you understand your options. You do not have to deal with this on your own.
Free, confidential, no obligation
Specialist debt advice for freelancers, contractors, and sole traders struggling with tax and other debts.
Support for business owners dealing with VAT, PAYE, and other business debts alongside personal liabilities.
How an IVA works when you are self-employed, including how HMRC debt is handled within the arrangement.
Your rights when HMRC or any creditor instructs debt collectors to recover money you owe.
What to do if HMRC has sent bailiffs and how to protect your rights during enforcement visits.
A full guide to Individual Voluntary Arrangements and how they can help you deal with HMRC and other debts.