PLEASE NOTE: The charity TaxAid advises only those people on low incomes whose problems cannot be resolved with HMRC.

Problems paying your tax?

Thousands of people are unable to pay their tax on time, and many have sleepless nights worrying about going bankrupt, losing their home or job, or even going to prison.

The worst thing is to ignore the matter. Your situation may not be as bad as you think, but you should act quickly. If you do nothing at all, you increase the risk of legal action against you.

TaxAid has made some easy to understand films that explain how to handle each stage of your tax debt. To watch them, click here: Tax Debt get it right! (You can download links and text of the video here )

Most often, you will become aware that you owe tax in one of the following ways:

Do not ignore a letter or demand from HMRC which states that tax is due, as this will usually make things worse. Quite often, a quick response can reduce the size of the problem.