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If You Can’t Pay Your Tax Bill On Time

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Wednesday 12th June 2019 No Comments »
If You Can’t Pay Your Tax Bill On Time

Overview

If you can’t pay all your tax on time, contact HM Revenue & Customs (HMRC) as soon as possible.

You may be able to either:

  • Get more time to pay
  • Pay your bill in instalments

If you don’t contact HMRC, you’ll get charged penalties and interest, making your tax bill bigger

Your payment isn’t due yet

Call HM Revenue & Customs’ (HMRC) Business Payment Support Service. Anyone can use this service, not just businesses.

HMRC Business Payment Support Service
0845 302 1435
Monday to Friday, 8am to 8pm
Saturday and Sunday, 8am to 4pm

You’ll need to have specific information ready before you call.

You’ve missed the payment deadline

Contact HM Revenue & Customs (HMRC) as soon as possible.

If you’ve been sent a payment demand

If you’ve been sent a payment demand, like a tax bill or a letter threatening you with legal action, call the HMRC office that sent you the letter.

If you haven’t been sent a payment demand

If you’ve recently sent your tax return but haven’t got a bill or letter about payment yet, call HMRC’s Business Payment Support Service. Anyone can use this service, not just businesses.

HMRC Business Payment Support Service
0845 302 1435
Monday to Friday, 8am to 8pm
Saturday and Sunday, 8am to 4pm

Make sure you’ve got specific details to hand before you call.

When you call about your tax bill

Before you call

You’ll need to know:

  • Your reference number (eg 10-digit unique taxpayer reference, VAT reference number etc)
  • The amount of the tax bill you’re finding it difficult to pay and the reasons why
  • What you’ve done to try to get the money to pay the bill
  • How much you can pay immediately and how long you may need to pay the rest

What happens when you call

HM Revenue & Customs (HMRC) will ask you about:

  • Your income and expenditure
  • Your assets, like savings and investments
  • What you’re doing to get your tax payments back in order

HMRC will decide whether you should be able to pay immediately – or if you can’t, whether you will be able to get your payments back on track with more time.

They think you can pay now

HMRC will expect you to pay immediately and take payment over the phone by direct debit, credit or debit card.
If you can’t do this, they’ll tell you what other payment options you can use.

They think you can pay with more time

HMRC may offer you extra time to pay if they think you genuinely can’t pay in full now but will be able to pay in the future.
They’ll encourage you to set up a direct debit to make payments on dates they agree with you. They may agree for you to pay in instalments. If your circumstances change and you can pay your tax bill faster, you should tell HMRC as soon as you can. You’ll have to pay interest on the amount you pay late.

You must keep these payments up to date and pay your other tax. If you don’t, HMRC will normally cancel the arrangement and take legal action against you straight away.

They don’t think you can get your payments up to date

HMRC won’t make an arrangement with you – they’ll expect you to pay your tax bill straight away. If you don’t, HMRC will start ‘enforcement action’ to get the money from you.

You can pay HMRC in different ways, including direct debit.

You can get help and advice from a number of organisations if you’re dealing with enforcement action for tax you owe.

You’re asked for more information

If you’ve been given time to pay before, you’ll be asked more in-depth questions. In more complex cases HMRC may ask for evidence before they make a decision.

Making a complaint

You can’t appeal against HMRC’s decision, but you can make a complaint if you’re unhappy about how you were treated.

At Bizorb we aim to provide the most accurate and up to date information to you. This article contains public sector information licensed under the Open Government Licence v1.0. If you spot any errors in this article please let us know.

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