Tax and other debts owed to HM Revenue ad Customs

 In the event that you receive a tax bill from HM Revenue and Customs (HMRC) that you are unable to pay, it is critical that you contact them immediately and work out a solution. If you fail to do so, and your bill remains unpaid, HMRC will initiate legal action to reclaim the funds.

If you are unable to pay your account, you have several options.

If you are unable to pay your account, contact the office that sent you the most recent correspondence; if they agree that you are truly unable to pay, they will do everything they can to assist you. They may grant you an extension of time to pay – perhaps in instalments.

If you don't pay your bill

If you don't pay your tax bill, HM Revenue and Customs (HMRC) will initiate 'enforcement action' to recover the money due to them. If you get in touch with them, you might be able to avoid this.

If you and HMRC are unable to come to an arrangement (or if you fail to make the payments you have committed to make), HMRC has a number of options.

Debts are collected in a direct manner.

In some cases, HMRC may be able to deduct the amount you owe immediately from your bank or building society account. This is referred to as "direct collection of debts."

Distraint

HM Revenue and Customs (HMRC) has the authority to seize and sell your possessions in order to satisfy your debt. In Northern Ireland, this is referred to as 'discipline.'

Court action is being considered.

It's possible that you'll be required to pay court fees and HMRC's costs in addition to the tax that you owe if HM Revenue and Customs (HMRC) takes you to court.

Find out what happens if HMRC initiates proceedings in a magistrates' court on your behalf.

Bankruptcy proceedings are underway.

If you do not pay your obligations on time or if your debts outweigh your assets, you may be forced into bankruptcy and lose your house, business, savings, and other assets.

Bankruptcy

If you are unable to pay your tax obligation, you can get free advice.

You can also seek advice from a variety of organisations, including the following:

• Step Change is a debt relief organisation.
• Advice 
• TaxAid (external link opens in a new window or tab) is a website that provides tax assistance.

If you believe you have been treated unfairly, you can file a complaint with the appropriate authorities.

Even if you are unable to pay your taxes, you have a right to get fair treatment from HMRC. If you are dissatisfied with how you are being handled, you have the right to file a complaint.

If you are seeking for information about taxation fees, business and accounting services, please visit our website Accounting Firms, where we will supply you with all of the necessary information on accounting, business, and taxes fees.