When your business falls behind on VAT, PAYE or Corporation Tax, the pressure from HM Revenue & Customs (HMRC) can feel relentless. From mounting arrears to formal legal action, it’s easy to feel overwhelmed. But you don’t have to face this alone.
At Parker Walsh, we specialise in helping business owners manage HMRC debt and avoid unnecessary risks to their company and personal reputation. Whether you’re behind on tax payments or facing enforcement action, we’re here to guide you through your options and protect your future.
When your business experiences cash flow problems, HMRC is often the first creditor to escalate matters. Ignoring tax arrears can lead to:
These can quickly spiral out of control and threaten the very survival of your business.
Unlike many creditors, HMRC has significant powers to collect unpaid tax. If your business falls behind, you may face:
That’s why it’s vital to speak to a Licensed Insolvency Practitioner before things reach a crisis point.
We offer free confidential, face-to-face or virtual consultations with an experienced, licensed Insolvency Practitioner. After understanding your specific pressures and obligations, we’ll recommend the right path forward. Act now and book a 30 minute call.
Every solution we offer is fully explained so you can move forward with confidence. You have several options, including:
If you're struggling with HMRC debts, you may also be facing broader insolvency issues. Ask yourself:
If the answer is “yes” to any of these, it’s time to seek professional advice.
We understand the stress business owners face when HMRC starts applying pressure. That’s why we’re committed to:
You don’t need to face enforcement action or insolvency alone.
The longer you delay, the fewer options you’ll have. Don’t wait for HMRC to escalate matters. Take control now with support from Parker Walsh
What should I do if I can't pay my VAT or PAYE to HMRC?
If your business is struggling to pay VAT, PAYE or Corporation Tax, the first step is to speak with a licensed insolvency practitioner. At Parker Walsh, we’ll assess your cashflow and explore whether you could enter a Time to Pay Arrangement, restructure through a CVA, or if it’s time to consider liquidation. Acting early opens up more options and can prevent serious enforcement action.
What happens if I ignore HMRC debt letters?
Ignoring HMRC letters can lead to escalating consequences. Initially, you may face interest and penalties, but this can quickly progress to:
Taking no action puts your business and reputation at risk. We strongly recommend seeking advice before it reaches this stage.
Can HMRC shut my company down?
Yes. If HMRC is owed unpaid tax and believes your company is insolvent, it can issue a winding-up petition. If granted by the court, this will force your business into compulsory liquidation. The process can also result in directors being investigated. Working with Parker Walsh can help you avoid this by entering into a formal, voluntary process first.
What is a Time to Pay (TTP) arrangement and how does it work?
A Time to Pay Arrangement is an agreement with HMRC that allows you to pay overdue taxes in affordable instalments, typically over 6–12 months. You’ll need to present a clear proposal showing how the debt will be repaid. TTPs are only considered if HMRC believes your business is viable and acting in good faith. We can help negotiate this for you and improve your chances of success.
Will I be personally liable for my company’s tax debts?
Generally, company debts remain with the company. However, HMRC can pursue directors personally in certain cases - for example, if you’ve continued to trade while knowingly insolvent, or failed to meet your legal duties. Seeking early, professional advice is essential to protect yourself. Parker Walsh will help ensure all actions are compliant and reduce personal risk.
Can I continue trading if I’m in arrears with HMRC?
Possibly, yes - especially if your business is still fundamentally viable. We may explore a Company Voluntary Arrangement (CVA) or Time to Pay plan which can allow you to continue trading while managing repayments. However, if the debt burden is too high, liquidation may be the most responsible course of action.
What’s the difference between a CVA and a liquidation?
A CVA allows you to continue trading while paying creditors (including HMRC) over time, typically up to five years. It’s suitable for businesses with underlying strength but short-term issues.
Liquidation means closing the company, selling its assets and using proceeds to repay creditors. It’s often used when recovery is no longer possible. We’ll help you choose the most appropriate option based on your circumstances.
Our mission is to provide practical, effective solutions for businesses facing financial distress.
Whether you're dealing with short-term debt, pressure from HMRC, or it's simply time to wind up your company, Parker Walsh will work with you to find the right solution.
We specialise in:
Our advice is always free, confidential, and without obligation. You’ll speak directly with our experienced team - no call centres, no sales scripts.
We're based in the North West but operate nationwide. Everything is handled in-house by licensed professionals, with affordable, transparent fees and no hidden surprises.
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