Income tax and VAT bills are viewed as priority debts, which means that if you fail to settle them, Her Majesty’s Revenue and Customs (HMRC) can take action against you to get the money that is owed. The consequences of not paying these can be very serious.
The HMRC can collect money directly from your earnings or pensions, take money directly from your bank account or send a bailiff to recover the debt. If you owe more than £5,000 they could also apply to make you bankrupt.
Never ignore correspondence from the HMRC
Call the HMRC to discuss your available options if you need time to pay
Ignoring correspondence can lead to serious consequences
Work out an affordable amount by putting together an affordable budget
You will need to suggest to HMRC how much you can afford and how long it will take you to make the repayments. Work out your incomings and outgoings, as well as any future risks to income, then devise a budget to cover living costs and other priority debts.
Seeking confidential debt advice can be beneficial. As a leading debt management company, Fresh Start UK deals with thousands of cases each year and is able to provide our clients with advice and guidance to help prevent debts from becoming insurmountable. Get in touch with us today to find out more.
Fresh Start UK has helped more than 12,000 people gain control of their finances and become debt-free. If you’re struggling with debt and finding it tough to keep up with your bills, speak to an advisor today.Get Started
It’s never pleasant dealing with the threat of enforcement action, particularly if you want to take control of your finances but don’t know how.
As a leading Debt Management Company, Fresh Start UK is perfectly placed to help. We have years of experience in dealing with creditors and helping to keep enforcement agents at bay. If you’d like to find out more, get in touch with the experienced and professional team today.
Money Helper has replaced the Money Advice Service and brings together the support and services of three government-backed financial guidance providers: the Money Advice Service, the Pensions Advisory Service and Pension Wise.