HMRC Frequently Asked Questions

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Can HMRC debt be written off?

Yes, HMRC debt can be written off. You will have to go through a formal insolvency process like liquidation. Alternatively you can use one of our services to have your debt written off while continuing with your business and protecting your assets.

Can HMRC freeze my bank account?

Yes, HMRC can put an arrestment on your bank account. This will block you from using any funds in your account to run your business. You can see some strategies to avoid this scenario here.

Can you go to jail for not paying HMRC?

No, provided you have not done anything fraudulent like filing a false return HMRC are a normal creditor like anyone else you owe money to. You should not be intimidated by HMRC.

Can HMRC take you to court?

Yes, they can do everything that anyone else you owe money to can do, including taking you to court, sending in sheriff’s officers or trying to wind up your company.

What happens if I can’t pay my tax bill?

Firstly, you should ask HMRC for more time to pay. It is normally possible to get an extra 3-6 months to pay.

What happens if I can’t pay PAYE bill?

If you can’t pay PAYE that you’ve deducted from employees, you should try to get more time to pay. If this is not possible or if the amount owed is too big to manage then you should consider either a formal insolvency or one of our services to write off the debt.