Tax debt

Extra advice:

other types of tax

You or your business may also owe other types of tax such as PAYE, CIS or Corporation Tax. The rules may be different when dealing with these types of tax. If you owe any of these types of tax, contact us for advice.

​If you have arrears of income tax, National Insurance or VAT, it is important to make an arrangement to pay what you owe as soon as possible. You need to treat these debts as priority debts because Her Majesty’s Revenue & Customs (HMRC) have strong powers to make you pay. Depending on what type of tax you or your business owes, your business and personal assets could be at risk.

Dealing with your priority debts and Income tax, VAT and National Insurance

See our fact sheet:

Income tax debt.




HMRC will not usually allow tax arrears to build up without coming to a payment arrangement or taking further action. You will need to work out a budget to see what you can afford to offer.

Your budget

No longer trading?

If you have a tax debt, you have probably been self-employed in the past. If you are no longer trading we have a fact sheet that you might find useful. It deals with a range of business debts, including debts to HMRC.

See our fact sheet:

Business debts.