0800 644 6080
Call FREE from Landline and Mobile
Est. 1989

Overdue VAT Payment - HMRC Debt Management Letter

Licensed UK Insolvency Practitioners FREE Meeting for Company Directors

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

Understanding an overdue VAT payment letter from HMRC and what you should do next


Open Quote
Please pay £XXX. We recently wrote to you about the business’s overdue VAT payment. Our records show that the amount shown is still overdue and that your business has previously defaulted in the past twelve months.

If you do not pay or contact us, we can visit your premises in order to arrange for assets to be sold by public auction as the law allows

CLICK IMAGE to view full letter

HMRC Overdue VAT 


If your company has failed to pay its Value Added Tax (VAT) bill, HMRC will soon become rather demanding. This letter indicates their frustration at waiting to be paid and shows that distraint is the next step in the process. This is where HMRC send an officer to your business premises to serve you a distraint notice – notifying you of their intention to return and seize assets so that they can be sold at public auction with the proceeds going towards your VAT bill.

At that stage, there is no legal requirement to let anyone from the tax office or a debt collection agency into your home or premises on the back of a distraint warning – the only way they can enter is with a court authorisation in the form of a warrant which may come later should you still fail to pay. Only then can they enter into your property and remove items which will be sold to clear your debt.

If you’re struggling to pay your VAT, it’s best that you talk to a licensed insolvency practitioner as soon as possible – you can do this free of charge in a one-to-one setting at your nearest Real Business Rescue office.

Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Desling with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
Number of UK Offices
Directors Helped
Licensed Insolvency Practitioners