Taxman says help available as HMRC debt collection resumes

HMRC debt collection

Taxman says help available as HMRC debt collection resumes

HM Revenue & Customs (HMRC) has warned that debt collection will resume as the UK emerges from the pandemic. HMRC will contact taxpayers who have fallen behind with their taxes. HMRC says it will take an understanding and supportive approach to dealing with tax debts or concerns about their ability to pay their tax.

During the pandemic, HMRC tax debt collection was on hold. But on 30 June 2021, HMRC announced that it was restarting its debt collection work as economic activity resumed.

In its latest announcement, HMRC stated: “If you can pay your taxes, then you should do so – but if you are struggling, we want to work with you to agree on a plan based on your financial position.”

HMRC will contact all taxpayers with outstanding debts to discuss payment options and warning they must respond to these notifications as soon as possible.

Taxpayers may be offered a short-term deferral, with no further action to collect the tax debt until that time has elapsed.

As part of agreeing to Time to Pay arrangements with businesses, HMRC will also talk about other forms of support for which they may be eligible.

HMRC is warning that they will try to help businesses with temporary cash-flow issues to survive. However, HMRC has a responsibility to act on companies with little chance of recovery – not least to protect viable businesses in the supply chain.

If you would like to talk through your options with our tax advisors, please contact us here.

Link: Debts owed to HMRC due to COVID-19

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