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"Brilliant, straight to the point, answered my questions promptly A+"
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"Very good advice and simply put without the Jargon."
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"Spoke with Chris who was able to offer me some excellent, practical advice. Extremely friendly and professional to deal with - I can't recommend them highly enough!"
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"I have contacted Christopher today for advice and he was extremely knowledgeable, super fast, helpful and clear in his responses. I feel he went out of his way to answer my questions. Highly recommended!"
What can I do if I can’t pay my company’s HMRC bill?
If your company can’t pay its tax bills, HM Revenue & Customs (HMRC) can take action to make the company repay what it owes. This action could include County Court Judgments (CCJs) and, at worst, a winding-up petition; formally closing and liquidating your company.
To prevent escalation, you should act quickly. There are options available to you:
Contact HMRC and negotiate an informal Time to Pay Arrangement (TTP) A Time to Pay Arrangement (TTP) is an agreed, informal arrangement with HMRC that allows a company to repay its tax bill in an agreed timeframe. Before being granted a TTP, the company must demonstrate that it can maintain the required repayments. Repayment periods may vary but can last between three, six, and occasionally 12 months. More on personal liability for company debt
Formal repayment arrangements A Company Voluntary Arrangement (CVA) could be a viable option for company directors who feel they’d have a genuinely profitable business were it not for the debts. CVAs involve paying a company’s creditors a monthly, affordable portion of their debt while the company continues trading. Read more about Company Voluntary Arrangements
Explore company closure through liquidation If your company is struggling under creditor pressure and there’s little chance of repaying the debts, you can close the company via a Creditors’ Voluntary Liquidation (CVL). Doing so draws a line under the debts as they die with the company’s closure, removing creditor pressure and allowing the directors to move on. Read more about Creditors’ Voluntary Liquidation
What HMRC bill can’t you repay?
Getting into debt with HMRC is a common problem, and a company could be hit with different tax bills at different times. These tax bills could include, but are not limited to:
Value Added Tax (VAT)
National Insurance (NI)
Pay As You Earn (PAYE)
Corporation Tax
HMRC take non-payment very seriously. Failing to pay VAT on time can leave you open to surcharges. Failing to pay PAYE, NI or Corporation Tax can leave you open to tax penalties, worsening your situation. These penalties can increase over the tax year depending on the number of defaults. HMRC will charge interest on overdue amounts from the due date until the date the company pays.
Large arrears can indicate cash flow problems and sometimes insolvency, meaning HMRC may further investigate the company’s tax affairs.
Can I be held personally liable for my company’s tax bill?
Under normal circumstances, a limited company and its director are separate entities, and the limited company’s debts won’t affect the director’s personal finances and vice versa. However, there can be circumstances wherein a director may have acted unlawfully before or during the insolvency, have personal guarantees or an overdrawn Directors Loan Account (DLA). In this case, the director can be held personally liable.
Trading whilst insolvent could also result in personal liability for the company’s debts, including any unpaid taxes.
Additionally, in some circumstances, legislation allows HMRC to take recovery action directly against directors of companies with liabilities owed to them, effectively treating them personally liable for the unpaid amount.
What are HMRC’s powers?
Should you ignore their reminders, HMRC can take further action to recover what your company owes.
You should take HMRC’s reminders seriously. They are responsible for winding-up more companies and bankrupting more individuals than any other creditor.
County Court Judgments (CCJs) If you can’t contest a debt, it will be proven in court. If the company can no longer pay that debt, it indicates the company is insolvent. The creditor, such as HMRC, can then issue a County Court Judgment (CCJ). Failing to address a CCJ, either by repaying or having it set aside in the allotted time, means it will stay on the company’s credit file for six years, making it harder to secure credit in the future. More on County Court Judgments
Distraint order HMRC can serve a ‘distraint order notice’, which can be used to seize assets or stock. They won’t take items that impact the company’s ability to work or ‘tools of the trade’, but assets or stock deemed redundant could be taken. More on HMRC’s powers of distraint
High Court Enforcement Officers (HCEOs) If you ignore reminders to pay your HMRC tax bill, they can send bailiffs or High Court Enforcement Officers (HCEOs) to collect items equal to the debt’s value, which are then sold to recover the amount. More on bailiff powers
Winding-up petition If the company owes more than £750, HMRC can issue a winding-up petition. When advertised, a winding-up petition leads to the company’s bank accounts being frozen, making trading impossible. More on winding-up petitions
If the debt is a company’s, the bailiffs and HCEOs should only visit its registered address. While they can seize a company’s assets, they cannot take anything on lease, hire purchase, or items essential to keep the company running.
Can I repay other creditors before HMRC?
With the threat of HMRC winding up your company, it may be tempting to repay them before your other creditors. However, if your company is insolvent, you shouldn’t pay anyone directly without speaking to a licensed insolvency practitioner.
There is a payment hierarchy that should be adhered to. Deviating from it can lead to accusations of creditor preference or making a preference payment.
If you find you’re behind on payments or can’t repay your company’s HMRC tax bill, you do have options. If you’re unsure of the best way to move forward, contact us for free, impartial, non-obligatory advice.
Our experienced initial advisors can discuss your concerns over your company’s debts to HMRC. We can also discuss the company’s solvent position and assess its options.
Contact our initial advisers via phone or online chat. If we can help, we will arrange a free consultation with a consultant to discuss your situation in more depth.
During the consultation, we will advise if an insolvency procedure is the most appropriate route forward or what alternative options are available.
After your consultation, if there is an appropriate route forward, we will issue the relevant documentation for you to formally engage us.
In summary
If your company can’t repay its tax bills to HMRC, they will do everything they can to reclaim their money. A large, unpaid tax bill can indicate bigger problems within a company, so it’s essential to tackle the issue head-on and not bury your head in the sand; otherwise, the problems could worsen.
"Very good advice and simply put without the Jargon."
Iain W
star_ratestar_ratestar_ratestar_ratestar_rate
"Spoke with Chris who was able to offer me some excellent, practical advice. Extremely friendly and professional to deal with - I can't recommend them highly enough!"
Usman Khan
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"Very professional company, spoke to Chris at Wilson Field, who gave clear and honest advise regarding my business matter."
mark dangerfield
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"Brilliant, straight to the point, answered my questions promptly A+"
EdM-56
star_ratestar_ratestar_ratestar_ratestar_rate
"Christopher Callaghan at Wilson Field help me and my business. he alimented an extremely stressful situations and explained to me every step of the way in a way that i understood. thank you.
100% recommend Christopher and Wilson Field"
Martin Fellerman
star_ratestar_ratestar_ratestar_ratestar_rate
"Very good advice and simply put without the Jargon."
Iain W
star_ratestar_ratestar_ratestar_ratestar_rate
"Spoke with Chris who was able to offer me some excellent, practical advice. Extremely friendly and professional to deal with - I can't recommend them highly enough!"
Usman Khan
star_ratestar_ratestar_ratestar_ratestar_rate
"Very professional company, spoke to Chris at Wilson Field, who gave clear and honest advise regarding my business matter."
mark dangerfield
star_ratestar_ratestar_ratestar_ratestar_rate
"Brilliant, straight to the point, answered my questions promptly A+"
EdM-56
star_ratestar_ratestar_ratestar_ratestar_rate
"Christopher Callaghan at Wilson Field help me and my business. he alimented an extremely stressful situations and explained to me every step of the way in a way that i understood. thank you.
100% recommend Christopher and Wilson Field"
Martin Fellerman
star_ratestar_ratestar_ratestar_ratestar_rate
"Very good advice and simply put without the Jargon."
Iain W
star_ratestar_ratestar_ratestar_ratestar_rate
"Spoke with Chris who was able to offer me some excellent, practical advice. Extremely friendly and professional to deal with - I can't recommend them highly enough!"
Usman Khan
star_ratestar_ratestar_ratestar_ratestar_rate
"Very professional company, spoke to Chris at Wilson Field, who gave clear and honest advise regarding my business matter."
mark dangerfield
star_ratestar_ratestar_ratestar_ratestar_rate
"Brilliant, straight to the point, answered my questions promptly A+"
EdM-56
star_ratestar_ratestar_ratestar_ratestar_rate
"Christopher Callaghan at Wilson Field help me and my business. he alimented an extremely stressful situations and explained to me every step of the way in a way that i understood. thank you.
100% recommend Christopher and Wilson Field"
Martin Fellerman
star_ratestar_ratestar_ratestar_ratestar_rate
"Very good advice and simply put without the Jargon."
Iain W
star_ratestar_ratestar_ratestar_ratestar_rate
"Spoke with Chris who was able to offer me some excellent, practical advice. Extremely friendly and professional to deal with - I can't recommend them highly enough!"
Usman Khan
star_ratestar_ratestar_ratestar_ratestar_rate
"Very professional company, spoke to Chris at Wilson Field, who gave clear and honest advise regarding my business matter."
mark dangerfield
star_ratestar_ratestar_ratestar_ratestar_rate
"Brilliant, straight to the point, answered my questions promptly A+"
EdM-56
star_ratestar_ratestar_ratestar_ratestar_rate
"Christopher Callaghan at Wilson Field help me and my business. he alimented an extremely stressful situations and explained to me every step of the way in a way that i understood. thank you.
100% recommend Christopher and Wilson Field"
Martin Fellerman
star_ratestar_ratestar_ratestar_ratestar_rate
"Very good advice and simply put without the Jargon."
Iain W
star_ratestar_ratestar_ratestar_ratestar_rate
"Spoke with Chris who was able to offer me some excellent, practical advice. Extremely friendly and professional to deal with - I can't recommend them highly enough!"
Usman Khan
star_ratestar_ratestar_ratestar_ratestar_rate
"Very professional company, spoke to Chris at Wilson Field, who gave clear and honest advise regarding my business matter."
mark dangerfield
star_ratestar_ratestar_ratestar_ratestar_rate
"Brilliant, straight to the point, answered my questions promptly A+"
EdM-56
star_ratestar_ratestar_ratestar_ratestar_rate
"Christopher Callaghan at Wilson Field help me and my business. he alimented an extremely stressful situations and explained to me every step of the way in a way that i understood. thank you.
100% recommend Christopher and Wilson Field"
Martin Fellerman
star_ratestar_ratestar_ratestar_ratestar_rate
"Very good advice and simply put without the Jargon."
Iain W
star_ratestar_ratestar_ratestar_ratestar_rate
"Spoke with Chris who was able to offer me some excellent, practical advice. Extremely friendly and professional to deal with - I can't recommend them highly enough!"
Usman Khan
star_ratestar_ratestar_ratestar_ratestar_rate
"Very professional company, spoke to Chris at Wilson Field, who gave clear and honest advise regarding my business matter."
mark dangerfield
star_ratestar_ratestar_ratestar_ratestar_rate
"Brilliant, straight to the point, answered my questions promptly A+"
EdM-56
star_ratestar_ratestar_ratestar_ratestar_rate
"Christopher Callaghan at Wilson Field help me and my business. he alimented an extremely stressful situations and explained to me every step of the way in a way that i understood. thank you.
100% recommend Christopher and Wilson Field"
Martin Fellerman
star_ratestar_ratestar_ratestar_ratestar_rate
"Very good advice and simply put without the Jargon."
Iain W
star_ratestar_ratestar_ratestar_ratestar_rate
"Spoke with Chris who was able to offer me some excellent, practical advice. Extremely friendly and professional to deal with - I can't recommend them highly enough!"
Usman Khan
star_ratestar_ratestar_ratestar_ratestar_rate
"Very professional company, spoke to Chris at Wilson Field, who gave clear and honest advise regarding my business matter."
mark dangerfield
star_ratestar_ratestar_ratestar_ratestar_rate
"Brilliant, straight to the point, answered my questions promptly A+"
EdM-56
star_ratestar_ratestar_ratestar_ratestar_rate
"Christopher Callaghan at Wilson Field help me and my business. he alimented an extremely stressful situations and explained to me every step of the way in a way that i understood. thank you.
100% recommend Christopher and Wilson Field"
Martin Fellerman
star_ratestar_ratestar_ratestar_ratestar_rate
"Very good advice and simply put without the Jargon."
Iain W
star_ratestar_ratestar_ratestar_ratestar_rate
"Spoke with Chris who was able to offer me some excellent, practical advice. Extremely friendly and professional to deal with - I can't recommend them highly enough!"
Usman Khan
star_ratestar_ratestar_ratestar_ratestar_rate
"Very professional company, spoke to Chris at Wilson Field, who gave clear and honest advise regarding my business matter."
mark dangerfield
star_ratestar_ratestar_ratestar_ratestar_rate
"Brilliant, straight to the point, answered my questions promptly A+"
EdM-56
star_ratestar_ratestar_ratestar_ratestar_rate
"Christopher Callaghan at Wilson Field help me and my business. he alimented an extremely stressful situations and explained to me every step of the way in a way that i understood. thank you.
100% recommend Christopher and Wilson Field"
Martin Fellerman
star_ratestar_ratestar_ratestar_ratestar_rate
"Very good advice and simply put without the Jargon."
Iain W
star_ratestar_ratestar_ratestar_ratestar_rate
"Spoke with Chris who was able to offer me some excellent, practical advice. Extremely friendly and professional to deal with - I can't recommend them highly enough!"
Usman Khan
star_ratestar_ratestar_ratestar_ratestar_rate
"Very professional company, spoke to Chris at Wilson Field, who gave clear and honest advise regarding my business matter."
mark dangerfield
star_ratestar_ratestar_ratestar_ratestar_rate
"Brilliant, straight to the point, answered my questions promptly A+"
EdM-56
star_ratestar_ratestar_ratestar_ratestar_rate
"Christopher Callaghan at Wilson Field help me and my business. he alimented an extremely stressful situations and explained to me every step of the way in a way that i understood. thank you.
100% recommend Christopher and Wilson Field"
Martin Fellerman
star_ratestar_ratestar_ratestar_ratestar_rate
"Very good advice and simply put without the Jargon."
Iain W
star_ratestar_ratestar_ratestar_ratestar_rate
"Spoke with Chris who was able to offer me some excellent, practical advice. Extremely friendly and professional to deal with - I can't recommend them highly enough!"
Usman Khan
star_ratestar_ratestar_ratestar_ratestar_rate
"Very professional company, spoke to Chris at Wilson Field, who gave clear and honest advise regarding my business matter."
mark dangerfield
star_ratestar_ratestar_ratestar_ratestar_rate
"Brilliant, straight to the point, answered my questions promptly A+"
EdM-56
star_ratestar_ratestar_ratestar_ratestar_rate
"Christopher Callaghan at Wilson Field help me and my business. he alimented an extremely stressful situations and explained to me every step of the way in a way that i understood. thank you.
100% recommend Christopher and Wilson Field"
Martin Fellerman
star_ratestar_ratestar_ratestar_ratestar_rate
"Very good advice and simply put without the Jargon."
Iain W
star_ratestar_ratestar_ratestar_ratestar_rate
"Spoke with Chris who was able to offer me some excellent, practical advice. Extremely friendly and professional to deal with - I can't recommend them highly enough!"
Usman Khan
star_ratestar_ratestar_ratestar_ratestar_rate
"Very professional company, spoke to Chris at Wilson Field, who gave clear and honest advise regarding my business matter."
mark dangerfield
star_ratestar_ratestar_ratestar_ratestar_rate
"Brilliant, straight to the point, answered my questions promptly A+"
EdM-56
star_ratestar_ratestar_ratestar_ratestar_rate
"Christopher Callaghan at Wilson Field help me and my business. he alimented an extremely stressful situations and explained to me every step of the way in a way that i understood. thank you.
100% recommend Christopher and Wilson Field"
Martin Fellerman
star_ratestar_ratestar_ratestar_ratestar_rate
"Very good advice and simply put without the Jargon."
Iain W
star_ratestar_ratestar_ratestar_ratestar_rate
"Spoke with Chris who was able to offer me some excellent, practical advice. Extremely friendly and professional to deal with - I can't recommend them highly enough!"
Usman Khan
star_ratestar_ratestar_ratestar_ratestar_rate
"Very professional company, spoke to Chris at Wilson Field, who gave clear and honest advise regarding my business matter."
mark dangerfield
star_ratestar_ratestar_ratestar_ratestar_rate
"Brilliant, straight to the point, answered my questions promptly A+"
EdM-56
star_ratestar_ratestar_ratestar_ratestar_rate
"Christopher Callaghan at Wilson Field help me and my business. he alimented an extremely stressful situations and explained to me every step of the way in a way that i understood. thank you.
100% recommend Christopher and Wilson Field"
Martin Fellerman
star_ratestar_ratestar_ratestar_ratestar_rate
"Very good advice and simply put without the Jargon."
Iain W
star_ratestar_ratestar_ratestar_ratestar_rate
"Spoke with Chris who was able to offer me some excellent, practical advice. Extremely friendly and professional to deal with - I can't recommend them highly enough!"
Usman Khan
star_ratestar_ratestar_ratestar_ratestar_rate
"Very professional company, spoke to Chris at Wilson Field, who gave clear and honest advise regarding my business matter."
mark dangerfield
star_ratestar_ratestar_ratestar_ratestar_rate
"Brilliant, straight to the point, answered my questions promptly A+"
EdM-56
star_ratestar_ratestar_ratestar_ratestar_rate
"Christopher Callaghan at Wilson Field help me and my business. he alimented an extremely stressful situations and explained to me every step of the way in a way that i understood. thank you.
100% recommend Christopher and Wilson Field"
Martin Fellerman
star_ratestar_ratestar_ratestar_ratestar_rate
"Very good advice and simply put without the Jargon."
Iain W
star_ratestar_ratestar_ratestar_ratestar_rate
"Spoke with Chris who was able to offer me some excellent, practical advice. Extremely friendly and professional to deal with - I can't recommend them highly enough!"
Usman Khan
star_ratestar_ratestar_ratestar_ratestar_rate
"Very professional company, spoke to Chris at Wilson Field, who gave clear and honest advise regarding my business matter."
mark dangerfield
star_ratestar_ratestar_ratestar_ratestar_rate
"Brilliant, straight to the point, answered my questions promptly A+"
EdM-56
star_ratestar_ratestar_ratestar_ratestar_rate
"Christopher Callaghan at Wilson Field help me and my business. he alimented an extremely stressful situations and explained to me every step of the way in a way that i understood. thank you.
100% recommend Christopher and Wilson Field"
Martin Fellerman
star_ratestar_ratestar_ratestar_ratestar_rate
"Very good advice and simply put without the Jargon."
Iain W
star_ratestar_ratestar_ratestar_ratestar_rate
"Spoke with Chris who was able to offer me some excellent, practical advice. Extremely friendly and professional to deal with - I can't recommend them highly enough!"
Usman Khan
star_ratestar_ratestar_ratestar_ratestar_rate
"Very professional company, spoke to Chris at Wilson Field, who gave clear and honest advise regarding my business matter."
mark dangerfield
star_ratestar_ratestar_ratestar_ratestar_rate
"Brilliant, straight to the point, answered my questions promptly A+"
EdM-56
star_ratestar_ratestar_ratestar_ratestar_rate
"Christopher Callaghan at Wilson Field help me and my business. he alimented an extremely stressful situations and explained to me every step of the way in a way that i understood. thank you.
100% recommend Christopher and Wilson Field"
Martin Fellerman
star_ratestar_ratestar_ratestar_ratestar_rate
"Very good advice and simply put without the Jargon."
Iain W
star_ratestar_ratestar_ratestar_ratestar_rate
"Spoke with Chris who was able to offer me some excellent, practical advice. Extremely friendly and professional to deal with - I can't recommend them highly enough!"
Usman Khan
star_ratestar_ratestar_ratestar_ratestar_rate
"Very professional company, spoke to Chris at Wilson Field, who gave clear and honest advise regarding my business matter."
mark dangerfield
star_ratestar_ratestar_ratestar_ratestar_rate
"Brilliant, straight to the point, answered my questions promptly A+"
EdM-56
star_ratestar_ratestar_ratestar_ratestar_rate
"Christopher Callaghan at Wilson Field help me and my business. he alimented an extremely stressful situations and explained to me every step of the way in a way that i understood. thank you.
100% recommend Christopher and Wilson Field"
Martin Fellerman
star_ratestar_ratestar_ratestar_ratestar_rate
"Very good advice and simply put without the Jargon."
Iain W
star_ratestar_ratestar_ratestar_ratestar_rate
"Spoke with Chris who was able to offer me some excellent, practical advice. Extremely friendly and professional to deal with - I can't recommend them highly enough!"
Usman Khan
star_ratestar_ratestar_ratestar_ratestar_rate
"Very professional company, spoke to Chris at Wilson Field, who gave clear and honest advise regarding my business matter."
mark dangerfield
star_ratestar_ratestar_ratestar_ratestar_rate
"Brilliant, straight to the point, answered my questions promptly A+"
EdM-56
star_ratestar_ratestar_ratestar_ratestar_rate
"Christopher Callaghan at Wilson Field help me and my business. he alimented an extremely stressful situations and explained to me every step of the way in a way that i understood. thank you.
100% recommend Christopher and Wilson Field"
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