Are You Behind With Your Tax Bills?

As the economy continues to grow post-pandemic, we can expect to see a 'sea change' in how HMRC approaches tax debt. During the pandemic, they offered a lot of help to both individuals and businesses ...

But that is all changing now, and as the Government's flagship schemes like Furlough and SEISS wind down, HMRC will return to something close to its normal pre-pandemic debt collection procedures.

"It is still committed to an understanding and supportive approach!"

There is a big, but included here. Where a business has little chance of recovery, HMRC says it has a responsibility to act. If the Government's support schemes have kept a company on life-support, then HMRC may do something about it. The emphasis is on keeping viable businesses supported.

HMRC will contact you if there are any outstanding tax debts, and it's essential not to hide from them. If you or your company has tax due, then taking the initiative and speaking to HMRC before they initiate contact with you will work in your favour.

"HMRC says that if you can pay your tax debts you should, but they will help you if you can't!"

Of course, they will agree to a payment plan based on your current financial position; they really do want to help you. But again, I say don't hide from them, or they may escalate the debt to a collections agency, and then you could be in real trouble.

While HMRC still emphasises a cautious approach to debt enforcement action, they have extensive powers to look into your financial affairs, so do take appropriate action before this stage is reached.

Early engagement with HMRC is really important.

If you'd like to find out more about anything I've written here, do call me on 01908 774323 or leave a comment below and let's see how I can help you.