HMRC Income Tax Arrears

TYPES OF DEBT - HMRC Income Tax Arrears

In the UK, Income Tax is a mandatory obligation for individuals whose income exceeds a certain amount. How you pay your Income Tax depends on your employment status. If you are employed, your employer deducts it from your salary through Pay As You Earn (PAYE). This system ensures your tax contributions are collected smoothly.

Every year, between April 6th and April 5th, you will get a tax code in the mail. This code decides how much you can earn before paying taxes. Sometimes, mistakes happen, and you might not pay enough taxes by accident. If you owe less than £3,000, HM Revenue and Customs (HMRC) can change your tax code to get back the missing money without you needing to do anything.

If you work for yourself, you need to fill out a tax form called Self-Assessment by January 31st after the end of the tax year. This form is usually done online and figures out how much tax you need to pay for the year. It’s important to act fast if you can’t pay your tax bill by the deadline. Otherwise, you must face the penalties and unnecessary stress.

HMRC and Self-Assessment Tax Arrears

Let us help you in repayment of your HMRC debt

What happens if you can't pay HMRC Income Tax Arrears?

If you don’t take care of your overdue taxes quickly, there can be serious consequences. 

Here are some simpler explanations:

  • HMRC might hire debt collectors to get the money you owe.
  • HMRC might file for bankruptcy against you, which could lead to stopping your business, selling your assets, and looking into your finances.
  • For debts under £2,000 and less than a year old, the Magistrates Court may step in to enforce payment by bailiffs.
  • HMRC might take legal action against you, like a County Court Judgment, like what happens with unsecured loans or credit cards.

Mange your Income Tax Arrears Today

If you are having trouble handling your money after getting a tax bill, it’sa good idea to ask for help. Groups like Acme Credit Consultants are experts in giving advice about debts. They can help you figure out what to do and suggest solutions that fit your situation.

Call now : 0203 318 0990