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Est. 1989

Cannot afford to pay HMRC?

Licensed UK Insolvency Practitioners FREE Meeting for Company Directors

We can help with serious company debts, HMRC and creditor pressure, VAT/PAYE/Tax arrears, cashflow problems and raising finance.

HMRC is My Main Creditor But I Can't Afford to Pay Them, What Are My Options?

“My business is not indebted to any creditors, but I do owe HMRC taxes and I can't afford to pay them because we have no clients and no income right now. What are my options?”

The most ideal option for you will depend on your intentions. If you plan on keeping the business afloat and you just want an extension from HMRC then the best course of action would be to contact HMRC and request a 'Time to Pay' instalment plan.

Repaying the amount you owe in taxes over the period of about 3 to 6 months, however the timeframe varies with each instalment plan based on the discretion of HMRC.

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Normally such a plan would give you the opportunity to repay the amount you owe in taxes over a period of time.
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Before granting Time to Pay HMRC will want to assess whether:

  • The company is viable and has a suitable chance of recovery. If not they make seek to wind up through compulsory liquidation instead of granting an instalment plan.
  • The company ability to adhere to the terms of the Time to Pay instalment plan
  • The company's history in paying taxes
  • Whether the company truly can't afford to pay the taxes or they're simply looking for an extension so that they can put the money elsewhere for the time being (i.e. towards urgent investments). This is perhaps the most important stipulation because HMRC wants to know that you're requesting an instalment plan because you have to, not because you just don't want to pay them at the moment. 

If you're given a Time to Pay instalment plan you're obligated to notify HMRC if your business situation improves or takes a turn for the worse. If HMRC feels that there is significant risk involved in granting you an instalment plan then they may request additional information.

The good news is, if HMRC is your only creditor then your company is in relatively good standing as far as debt is concerned. Still, failure to pay taxes could result in some serious penalties and the longer you wait to deal with the issue the more interest you'll have to pay. Call us today on 0800 644 6080 or contact us online for free confidential advice.


Who we help

  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships

Contact our team

Jonathan Munnery
Andrew MacKenzie
Julie Palmer
Thomas Mckay
Keith Tully
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Our numbers speak for themselves

55
Number of UK Offices
30000
Directors Helped
70+
Licensed Insolvency Practitioners