Sofia Thomas highlights the impact that financial difficulties and tax debts can have on mental health
There is a huge amount of stigma around both mental health issues and debt, so when the two collide it can create an almost unbearable situation for individuals. Such anxieties can cause clients to avoid their tax issues until they become almost impossible to deal with.
Acknowledging the importance and intersection of financial difficulty and mental health is the first step for tax advisers and HMRC to best support clients in crisis. The reduced economic activity due to Covid-19 has made this issue even more topical, highlighting the need for a clear policy and plan on how to help and support customers with mental health issues. Advisers need to be of the real and tangible impact of tax debts, as mental health problems are being exacerbated by the current economic climate.