Income Tax Debt

Income Tax is a tax you pay on your income, you do not have to pay income tax on all sources of income however, and most people in the UK get a Personal Allowance of tax-free income.

Get Debt Help

Home > Income Tax

This Guide Includes

1. Income Tax

2. Income Tax Debt

3. Income Tax Errors

4. Struggling to pay your Income Tax?


Get Debt Help Now

Income Tax

Income Tax is a tax you pay on your income. This includes money you earn from employment, profits you make if you’re self-employed, some state benefits, most pensions, job benefits and income from a trust.

Most people in the UK get a Personal Allowance of tax-free income. This is the amount of income you can have before you pay tax.

Get Debt Help & Advice

Our team of advisers are here to support and advise you every single step of the journey.

Get Debt Help Now

Income Tax Debt

Her Majesty’s Revenue and Customs (HMRC) handle debts that relate to Income Tax, National Insurance, VAT arrears and tax credit overpayments. If you owe any of these, it’s vital that you deal with them as soon as possible.

The urgency is because these are considered ‘priority debts’, meaning the consequences of not paying them are serious and include court action, bailiffs – and in some extreme cases, even imprisonment.

What if the amount I am being asked for income tax is wrong?

There are a number of reasons why your income tax could be incorrect, such as:

  • You are no longer self-employed but did not inform HMRC
  • You made an error on your tax return form
  • You missed the tax return submission deadline and HMRC estimated your income, which will likely result in discrepancies
  • There is a time lag between payments and account updates
  • HMRC may have made a mistake

When there are anomalies in your income tax payments, you can easily find yourself in arrears (you may not even have known your income tax payments were incorrect). First things first, it is very important that you get in touch with the Income Tax Helpline on 0843 504 7177 or 0300 200 3300 to discuss your options.

Struggling to pay your Income Tax?

Struggle to make a payment, speak to them before it’s missed – and if you’re in a position to make an overpayment, do so – it can help buy some breathing space if you have a tighter month further down the line.

Speak to them today, make arrangements to pay what you can afford – and keep in contact every step of the way.

While many personal debts can be caught up with and action prevented, even late into proceedings – HMRC are more formal and their processes are often less forgiving then other creditors.

Reviews & Testimonials

Charlotte
2021-05-04
I really appreciate the support I was given regarding debt advice. I was provided with the upmost respect and there was no judgement at all. As difficult as it was to go through my situation, the advisors made me feel comfortable and were able to support me to find a solution to better manage my debts. A huge thank you to Jay and Keeley.
IB Whittaker
2021-04-28
I was in a really bad situation due to a sad divide between my family but when I came to Refresh Debt Services, my mind was almost at complete ease. Keith Brady in particular is a lovely advisor and does his utmost to not only help, but follow each step along the way with perfect understanding of each situation. Couldn't recommend this company enough.
Michelle D'Arcy
2021-04-28
Keith was great! constantly asked if I had any questions, made sure I understood everything, didn't rush me when I was getting information. Totally professional but also put me at ease and we even had a little joke. The weight of the world has been lifted off my shoulders. 100% recommend them.
Craig Newkland
2021-04-28
Very very good service and advice. People at Refresh are friendly, polite and knowledgeable. Would recommend to anyone.
Linda Harvey
2021-04-27
From the day i started my DMP the team have been more than helpful and respectful. Over the Last years i have had know reason to contact Refresh as i never had any issues with my payments ect. In the last week as my DMP has come to an end i needed advice and support with being able to show proof my DMP had come to and end and i now owe nothing, but also a huge weight lifted from my shoulders. Brenna my account manager was soo helpful and understanding and took her time to chat to me and send me all the info i had asked for. These people are not judgmental or insensitive, just helpful people trying to help you get back on track!! Thank you
jean roaach
2021-04-17
I found refresh very helpful when I was struggling with my debts. I received monthly statements and updates on what I was paying and when things changed and was only to happy to help with any problems I had all ways pleasant on the phone and understanding. Lucky enough I am debt free thanks to refresh would highly recommended them
Sarah
2021-04-15
Keith was so helpful! Made me feel very comfortable to talk to him about the help I needed. Would recommend anyone who is struggling to talk to him! Fantastic service! Couldn’t be more grateful of his time and help!
Carolyn
2021-04-03
Keith was absolutely brilliant. I was a victim of a sophisticated Bitcoin scam which has been largely responsible for my present financial predicament and I feel embarrassed and ashamed that I allowed this to happen to me.As a result I was really scared as I began to think that everything was fraudulent including Debt Management agencies. Right from the start I felt safe and reassured with Keith. He not only knew his stuff but validated my feelings and perceptions, was not at all judgemental and his concern and empathy were genuine with marked social, psychological and emotional intelligence and sensitivity. For the first time since I realised I had been scammed I could sleep. I felt protected and I still do. He would make a very good psychiatrist.
customer
2021-04-01
From the moment I spoke to Keith he put me at ease. He professionally took me through the possible steps, answering any questions that I had and his empathy and reassurance was very appreciated. Once I came to a final decision on what I needed Keith again answered any other questions and quickly put the plan into action. Honestly I had spent so many days/nights worrying about the debts once I had finished talking to Keith I felt like a huge weight was lifted from My shoulders!! I can’t thank Keith enough for taking the time to listen and then implement the plan for me! 10/10
Zdenka Suchankova
2021-03-29
Its a very friendly staff, just 5:45 I wait for next phone call and now its a5:50 and nobody call me. Something wrong?

News, Updates & Events

council-tax-bills

Temporary Relief From Council Tax

Temporary relief from Council tax, rent and other forms of debt arrears have been introduced as the “Breathing Space and Mental Health Crisis Debt Respite Schemes” are launched by the Government.

Read more