HMRC will try to work with anyone who owes tax to find a solution that is affordable and fair. It will only take action to recover the debt where it has not been possible to agree on a payment plan. If you don’t communicate with them, they won’t know if you need help or are just refusing to pay.
For any tax demand that you can’t pay immediately:
- Check that the amount you are being asked to pay is correct. HMRC may not have all the information they need to determine the right amount of tax. If you don’t understand how the amount has been calculated, ask HMRC or an adviser.
- If you need time to pay any or all the tax, get in touch with HMRC Debt Management as soon as possible.
Checking that the amount is correct
The most common ways in which tax underpayments can arise are from:
- PAYE underpayment, where not enough tax has been taken off your employment or pension income.
- Self Assessment, where you have made a tax return and paid the tax that you calculate was due but HMRC do not agree or have information about other income not included in the return.
In both cases, if HMRC’s calculation or information is not correct you can ask for tax due to be adjusted.
It is most important that you do not ignore a letter or demand from HMRC relating to tax that is due or unpaid. Delaying or not responding can result in more tax or interest being demanded, but a quick response can help reduce and resolve the problem.
Scams
Unfortunately, HMRC are aware of scam phone calls, emails, and text messages relating to tax debts. You can read HMRC’s guidance on scams here. You should be careful of any message or call that contains a link to unknown websites and do not provide personal or financial information in response to an SMS message, call or email.
TaxAid and Tax Help for Older People
If you have tried to seek help from HMRC but have been unable to resolve your tax issue, then our charity may be able to help you. We help people with their personal tax problems when they are not able to afford to pay for a tax adviser – find out more here.
