HM Revenue & Customs (HMRC) has warned that debt collection will resume as the UK emerges from the pandemic and it will be contacting taxpayers who have fallen behind with their taxes.
HMRC says it will take an understanding and supportive approach to dealing with those who have tax debts or are concerned about their ability to pay their tax.
During the pandemic, HMRC tax debt collection was put on hold. But on 30 June 2021, HMRC announced that it was restarting its debt collection work as economic activity resumed.
In its latest announcement, HMRC stated: “If you can pay your taxes then you should do so – but if you are struggling, we want to work with you to agree a plan based on your financial position.”
HMRC will be contacting all taxpayers with outstanding debts to discuss payment options and they have been warned they must respond to these notifications as soon as possible.
Taxpayers may be offered a short-term deferral, with no further action to collect the tax debt until that time has lapsed.
As part of agreeing to Time to Pay arrangements with businesses, HMRC will also talk about other forms of support they may be eligible for.
HMRC added that it will take an understanding and supportive approach to dealing with those who have tax debts or are concerned about their ability to pay their tax.
It also warned that it will do everything it can to help businesses with temporary cash-flow issues to survive as the economy grows, but where businesses have little chance of recovery, it has a responsibility to act – not least to protect viable businesses in their supply chains.