How To Pay HMRC Debt by Consumer Debt Help

How to Pay HMRC Debt?

HMRC stands for Her Majesty’s Revenue and Customs.

It is a non-ministerial department of the UK Government responsible for the collection of taxes as well as the payment of some forms of state support, the administration of other regulatory regimes including the national minimum wage and the issuance of national insurance numbers.

Table of contents:

    How to Pay HMRC Debt?

    The HMRC will always try to contact those who owe tax and/or national insurance when they do not receive payment for an assigned period.

    HMRC can send you a letter or email asking for the amount owed, but if they fail to ask, HMRC will send out reminders before following it up with a final notice.

    Those who are having difficulty paying HMRC debts can make arrangements using the HMRC’s online service, even making use of plans that work towards paying off your debt within timescales that suit you best.

    Though HMRC does advise that as soon as you are aware of the existence of an outstanding HMRC debt it is important that you act quickly and contact them at this time.

    If HMRC does not receive payment of a tax debt for an extended period HMRC will send out a final notice.

    The notice states that all possible methods to contact the debtor have been attempted without success and HMRC intends to pass on your details to a debt collection agency.

    HMRC hopes that this latter process will result in payment from the person concerned, or at least prompt them into contacting HMRC themselves.

    How Do HMRC Debt Bailiffs Work?

    Bailiffs cannot be sent until after HMRC has tried making contact with you twice when you owe less than £1,000, they are permitted one attempt once the amount owed is over £1,000.

    This also applies if HM Revenue Customs have previously failed to make contact using other methods as described above. They can visit you at home or at work but must give a set time in advance.

    HMRC does not pay bailiffs as they are employed by the company that HMRC has asked to collect the debt. HMRC can ask a court to order you to pay HMRC if should this be necessary.

    A civil action is when HMRC asks the court to deal with your debt and, in some cases, may force you through the court or send bailiffs around to seize property for sale.

    If HM Revenue & Customs feel that legal enforcement is required they can apply for an ‘attachment of earnings’. Which means that HMRC can take money directly from your wages at work and then reduce what you receive.

    It is important to keep track of any payments made on your HMRC debt; as HMRC will not refund any money that has been paid to them due to a cancelled HMRC debt.

    Cancelling HMRC Debt

    With HM Revenue & Customs cancelling part or your whole HMRC debt it is important to pay what you can afford on it. But should you no longer be able to do so, in some cases, HMRC can cancel the remaining balance (the amount owed).

    For those who are struggling with their finances, HMRC have set up an ‘alternative payment arrangement’ which allows you make smaller and/or flexible payments towards HMRC debts.

    This may help if other methods of paying HMRC such as instalments or a repayment plan are unsuitable for you.

    If HMRC decide that the best solution to your HMRC debt problem is to write off the full amount; They may be able to do this.

    How to Contact HMRC?

    If you cannot pay your tax bill and need help you should contact HMRC as soon as possible.

    For Self Assessment, you may be able to set up a payment plan online. This will let you pay your Self Assessment tax bill in instalments without contacting HMRC.

    You can set up a payment plan to spread the cost of your latest Self Assessment bill if:

    • you owe £30,000 or less
    • your tax returns are up to date
    • you do not have any other payment plans or debts with HMRC
    • it’s less than 60 days after the payment deadline

    Conclusion

    HMRC Debt can be a complicated and stressful burden to deal with.

    There are many ways to deal with HMRC Debt, at Consumer Debt Help our mission is to help you get out of debt.

    We Can Help With the Following Types of Debt

    Designed for people struggling with their finances these solutions allow you to take back control. At Consumer Debt Help, our mission is to get you out of debt.

    Visit our website at www.consumerdebthelp.info and complete our quick survey to see if we can help you become debt free. Stop struggling and take that step, you owe it to yourself!

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