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5 tips on what to do if you cannot afford to pay your tax bill

There are several options if you can’t afford to pay your tax bill, from paying as much as you can, to using a credit card or even finding one of the best pay day loans to help ensure you can pay your tax bill in full by the payment deadline. Whatever happens, you certainly shouldn’t ignore your tax bill. Whilst you might want to, it will only land you in more trouble, which is why it is so important to notify HMRC as soon as possible. Find out what else you can do if you can’t afford to pay your tax bill below.

1. Delay full payment

Remember, you certainly aren’t the first (and most definitely won’t be the last) person unable to pay their next tax bill. If you are unable to pay your tax bill for any reason, you must contact the HMRC in plenty of time and request more time to pay the total balance. If your request is accepted, you can be granted an extension of up to 120 days! There’s no need to panic if your request is declined, though. Instead, you can work out a payment plan based on your circumstances for a solution that is suitable for you.

2. Pay as much as you can

Don’t panic if you don’t want to delay full payment, instead pay as much as you can. Paying as much as you can is a great option to reduce interest charges and avoid paying a late payment penalty. Furthermore, there’s no excuse for not paying your tax bill. You can pay by phone, online or even by cheque. It’s quick, convenient and there are multiple credit card options to choose from.

3. Use a credit card

To avoid delaying full payment, why not use a credit card to pay your tax? Whilst many people avoid using their credit card, paying your tax bill with one could cost much less than IRS penalties and interest. Then, you can pay it back as and when suits you, and you don’t have to worry about receiving a costly penalty through the post.

4. Don’t Ignore It

Whatever you do, you certainly shouldn’t ignore your tax bill. If you ignore it, the HMRC may take enforced collection action. In order to avoid being hassled and getting into trouble, you should contact the HMRC immediately to discuss your options, who will work with you if you are suffering from financial hardship.  The penalty for not filing your tax bill is far worse than not paying your taxes on time!

5. Budget payment plans

To avoid not being able to pay your tax bill in the future, put together a budget payment plan. Budget payment plans are great because you can set up a plan to make regular payments in advance and decide how much to pay on a weekly or monthly basis. However, if the total amount you have paid doesn’t cover your tax bill in full, you will be required to pay the remaining balance by the payment deadline.

If you can’t afford to pay your tax bill, don’t panic. There are plenty of options, such as paying as much as you can to avoid paying in full or using a credit card to lift the heavy weight off your shoulders. In the future, you may decide to put together a payment plan to ensure you can pay your tax bill in full by the payment deadline.

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