Financial distress is a stressful situation, and tax liabilities can add another layer of worry. However, at DMC Recovery, we understand there are steps you can take to manage your tax burden during difficult times.
Here are some key tips to help you navigate tax liabilities in financial distress:
- Prioritise Transparency and Communication:
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- Contact HMRC Early: Ignoring your tax liabilities will only make things worse. Contact HMRC as soon as possible and explain your financial situation. They are more likely to be understanding and work with you if you’re upfront and proactive.
- Seek Professional Advice: Consulting an Insolvency Practitioner or a qualified tax advisor can be invaluable. They can help you understand your options and negotiate with HMRC on your behalf.
- Explore Payment Solutions:
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- Time to Pay Arrangements: HMRC offers Time to Pay Arrangements (TTPAs) for businesses and individuals struggling to meet their tax liabilities. These arrangements allow you to spread your tax debt over a manageable timeframe.
- Deferrals and Reductions: HMRC may be willing to defer or reduce your tax debt based on your circumstances. They can consider factors like your income, assets, and overall financial hardship.
- Understand Filing Requirements:
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- Continue Filing Tax Returns: Even if you can’t afford to pay your tax bill in full, it’s crucial to continue filing your tax returns on time. Late filing penalties can further worsen your financial situation.
- Prioritise Essential Taxes:
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- Focus on Payroll and VAT: While difficult, prioritise paying taxes like payroll and VAT to avoid penalties and potential legal consequences.
- Consider Professional Solutions:
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- Company Voluntary Arrangements (CVAs) or Individual Voluntary Arrangements (IVAs): These insolvency solutions can help manage unsecured debts, including tax liabilities.
DMC Recovery: Your Guide Through Financial Difficulty
At DMC Recovery, we understand the complexities of managing tax liabilities during financial distress. We offer a range of services to help you:
- Negotiate Time to Pay Arrangements with HMRC
- Explore insolvency solutions like CVAs and IVAs
- Develop a comprehensive plan to address your tax liabilities
Facing tax problems during financial distress doesn’t have to be a solitary battle. Contact DMC Recovery today on 0161 474 0920 for a free consultation and discuss how we can help you navigate this challenging situation.
