Dealing with tax debt

Chris Holmes and Jennifer Jones examine HMRC’s approach to tax debt, and the best approach for taxpayers in difficulty

In response to the Covid-19 health pandemic, the UK government announced extra resources to assist those struggling to pay their tax liabilities due to financial distress. In March 2020, HMRC started suspending debt collection proceedings where Covid-19 is the reason for problems paying tax bills. In the early weeks of the Covid-19 lockdown, our experience showed that payment deferrals were agreed with HMRC following a relatively brief phone conversation.