Debt Solution for Personal and Business HMRC tax Debt

Dealing with Personal and Business HMRC tax Debt? Get Solution Today

HMRC can petition for personal bankruptcy if you owe £5000.00 or more in personal tax debt. In the financial year 2019/ 2020 there were 5604 bankruptcy petitions filed by HMRC out of over 6.5 million HMRC Tax debt cases they handled.

If you do not pay HMRC Tax debt you owe in full or in time,HMRC may give you further opportunities to pay tax debt in following two ways.

  1. Pay it as soon as possible.
  2. Pay it via an affordable monthly repayment but within an agreed time period.

We all have different type of tax debt liability, so our office helps different debt solutions as per your needs and requirements as some cases become complex when there is court action initiated by HMRC for debt recovery.

If you have a tax debt, except in case where you are already suspect of criminal activity or scam, our office will speak to you and agree on a suitable debt solution plan to pay HMRC Tax debt via an affordable and sustainable monthly repayment.

Debt Solution for Personal and Business HMRC tax Debt

Struggling with HMRC TAX Debt? Get Advice Today

HMRC and tax debt collection companies

HMRC can assign tax debt to following debt collection companies and you may receive further demand to pay full tax debt or part of tax debt as both HMRC and debt collection company can contact you simultaneously to get set debt portion of tax liability.

Our office is dealing with all these debt collection companies for our many tax debt clients. (Ltd companies and Individuals)

  • LCS
  • Advantix Credit Ltd
  • Bluestone Credit Management
  • BPO Collections Ltd
  • CCS Collect
  • Moorcroft Debt Recovery Ltd
  • Past Due Credit Solutions
  • Oriel Collections

How Can we help in HMRC Tax debt?

HMRC Tax debt is a priority debt and HMRC does not want to set a precedent that they are easy to accept repayment arrangement and long delay in recovering tax liability.

There are following debt solutions for HMRC Tax debt. (Both Personal and Business Tax Debt)

1. Time To Pay Arrangement (TTP):

TTP arrangement would allow struggling businesses and people to repay its outstanding Self-assessment tax arrears, corporation tax, PAYE/ NI, VAT, CIS and other HMRC liabilities in instalments, rather than in one go.

What we aim to do:

HMRC liabilities will not simply disappear overnight but seeking a Time to Pay arrangement has its advantages.

  1. We will be spreading out the repayment of debt over a period of time, rather than all at once. This will improve cash flow and ensure your company’ business has money to pay other outgoings such as rent, wages and suppliers. If you have a personal tax debt liability, we will ensure to conduct financial due diligence in fair manner so your disposable income will remain your monthly repayment amount.
  2. Opting for a Time to Pay arrangement will demonstrate a willingness to repay liabilities. This helps your business and you as individual remain on good terms with HMRC.
  3. Proactively seeking Time to Pay will decrease the likelihood of HMRC taking enforcement action against your business and you.
Our process of a Time to Pay Arrangement is as follows.
Assess the situation

It is important to explore the financial situation of the business and what will be suitable for your business. We would analyse your company’s management accounts, forecasts, previous accounts and sustainable business activities. I am optimistic that your financial accounts and reporting would be helpful in getting HMRC agreed on our detailed plan towards TTP.

Repayment proposal

We will assess your business and personal finances and recent correspondence with HMRC and will devise a repayment proposal to be put forward to HMRC. Included within the proposal would be details of the circumstances surrounding your cash flow difficulties including facts from you that how and when HMRC payment got missed and reasons for this difficulty.


Our staff have years of experience working with HMRC and utilise the strong relationships built over time. Our experienced debt consultants will negotiate a structured repayment plan on behalf of your business. It will demonstrate to HMRC that you fully intend on repaying your debt. The proposed repayment plan will outline the suggested repayment amounts and term requested.

Arrangement starts

If HMRC accepts the proposal, the Time to Pay arrangement will commence. The Time to Pay arrangement will conclude once all repayments have been made. Additionally, any interest and fee/charges will have been paid.

2.  Alternative solutions (Business Tax Debt)

Time to Pay Arrangements can only be used to relieve HMRC specific debts. If you have debts to other parties, or you’ve had a TTP which has failed, other debt-relief options may be more suitable for you.

Company recovery

If you’re looking to pay off your debt while continuing to trade, there are alternative arrangements. You can apply for a Company Voluntary Arrangement (CVA), in which you stay in control of the company, continuing to trade while you repay your debts. Alternatively, if your business would benefit more from restructuring, company administration may be a suitable solution. I can discuss fact finding and our reports with CVA advisor in advance.

Company closure

Sometimes, the company’s debt can be so substantial that it’s not possible to continue trading, and you may be better off closing the company through a Creditor’s Voluntary Liquidation (CVL). Doing so would involve selling off company assets before creditors force it into compulsory liquidation

Personal Tax Debt Solutions:

1. Time to pay arrangement (TTP)

TTP is an informal debt solution plan and it is not recorded on personal bankruptcy register of UK government. It needs regular and affordable disposable income and it suits best if you could introduce some lump sum funds to reduce your personal tax liability during your TTP arrangement in place so the debt liability could be reduced to lower the risk of formal debt recovery action of bankruptcy or IVA ,For example you reduce your tax debt to below 5k.

TTP is also suitable when you are in the position to repay your full tax liability within 12 months. If you are struggling to afford repayment and are not in the position to repay within 12 months, we can offer support in extending your TTP arrangement for longer period.

2. Debt Management Plan

DMP is an informal debt solution and if you have other unsecured personal debts including credit cards, personalloans, store cards and HMRC tax debt then we can combine your all unsecured debt liability with in debt management plan so you pay one affordable monthly repayment after consolidating all your debt by DMP. Under a DMP plan, we aim to freeze interest and charges on your credit cards and store cards. HMRC does not freeze interest on their tax liabilities.

3. Bankruptcy

If HMRC petition for bankruptcy then a personal bankruptcy order is likely to be granted by the court for HMRC tax defaulter and if the tax debt is over 5k.

It is very serious matter for any individual and family as it is serios step which has pitfalls for now and future and it is likely to affect your employment, self-employment, tenancy, properties, shares / stocks, companydirectorship, car insurance renewals and other valuable assets you may have. Please speak to a debt advisor ASAP if you are facing personal bankruptcy risk.

4. IVA

IVA can be proposed by an insolvency practitioner who submit information about all your debts, income and expenditure and assets summary to work out a repayment plan. IVA is a legally binding debt solution and a formal debt solution. Your name will appear on UK government’s bankruptcy register if you are subjected to IVA solution for your personal debt. You must seek proper debt advice before entering into a formal debt solution as IVAis likely to affect your finances, assets and professional life.

5. Debt Relief Order

DRO is also a formal debt solution and legally binding. If you have very few assets (not exceeding £1000.00 in total) and your total debt level is under £20,000.00 then you may be qualified for DRO. DRO procedure is low cost and easy for people who fits in the criteria of low disposable income of less than £75.00 per month, less than 20k combined debt and less than 1k value of total assets.

Worried about HMRC TAX Debt? Get Help Today


  • Rajnish Tyagi

    Rajnish Tyagi is a Cert DR qualified debt advisor. I write exclusively about debt management & related fields to help people understand & manage their debts & credit problems. i am also a managing principal of an FCA regulated debt management firm “Acme Credit Consultants Ltd” that offers suitable debt solutions to individuals and businesses in debt problems.