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What to do if…
you receive a tax bill you cannot pay by the deadline

Produced and maintained by PanicStation.org Published: Last reviewed: Editorial policy UK guide

Short answer

Do not ignore the notice. Verify it through an official route, pay only what you can safely afford now, and contact HMRC or your council as soon as possible to ask about an affordable payment arrangement.

Do not do these things

  • Do not assume there is no point responding because you cannot pay in full; early contact may reduce the risk of escalation.
  • Do not use high-cost short-term credit in a panic just to meet the deadline.
  • Do not click links or call numbers from unexpected texts or emails about tax debt until you have checked them through official routes.
  • Do not skip filing or submitting something you are still meant to submit because you cannot pay; late filing can create separate problems.
  • Do not use money needed for essentials such as rent, food, heating, medication, or travel to work before asking about instalments or free debt advice.

What to do now

  1. Work out who issued the notice.
    Check whether it is from HMRC for tax such as Self Assessment, PAYE underpayment, VAT, or Corporation Tax, or from your local council for Council Tax. Use the letterhead, reference number, and your official online account if you have one.

  2. Check that the notice is genuine before paying or replying.
    For HMRC, go to GOV.UK yourself and sign in to your HMRC online account, rather than using links in a message. For Council Tax, use your council’s official website or account. If a text, email, phone call, or WhatsApp message feels rushed, threatening, unexpected, or asks for bank details, treat it as suspicious and check HMRC’s scam guidance.

  3. Pay only what you can safely afford now.
    If you can make a partial payment without missing essentials, do that through an official payment route. Keep the payment confirmation. Do not empty your account if it means you cannot cover basic living costs.

  4. If it is HMRC, ask about a payment plan.
    HMRC may allow you to pay an overdue tax bill in monthly instalments, often called a Time to Pay arrangement. Be ready with the tax reference number from the notice, your UK bank details if setting up a Direct Debit, your income, your essential spending, and a realistic monthly amount you can afford. Use your best current figures and say if you need to check something.

  5. If it is Council Tax, contact your council immediately.
    Use the council’s official website, online account, or the contact details on a genuine bill. Ask for an affordable arrangement and say clearly if paying in full would leave you unable to cover essentials. If you have received enforcement letters or a summons, get free debt advice the same day.

  6. If the amount looks wrong or you already paid, gather proof before calling or writing.
    Keep bank confirmations, payment references, screenshots, statements, receipts, and copies of any letters. Do not send original documents unless an official route specifically requires them.

  7. Ask what interest, penalties, or charges may apply in your case.
    HMRC may charge interest while tax remains unpaid, and penalties may apply depending on the tax and timing. Ask whether agreeing a payment plan changes what happens next, and ask for the arrangement in writing or save the online confirmation.

  8. Get free debt advice if this is part of a wider money crisis.
    A debt adviser can help you prioritise rent, mortgage, food, energy, Council Tax, and tax debts. If you live in England or Wales, ask whether Breathing Space could help and whether the debt can be included; a debt adviser applies for it if it is suitable. Elsewhere in the UK, ask a debt adviser what local protections or options may apply.

  9. Start a simple record now.
    Write down the date and time, who you spoke to, the phone number or online route used, what was agreed, and any reference numbers. Keep screenshots or photos of key pages and letters.

What can wait

  • You do not need to build a perfect long-term budget tonight; first verify the notice and make contact safely.
  • You do not need to sell essential belongings, move home, or make other major decisions just because the letter feels urgent.
  • You do not need to solve every detail of the tax calculation immediately; first stabilise the deadline, then check the figures.
  • You do not need to decide alone whether this is your only debt problem; free debt advice can help you sort priorities after the immediate contact is made.

Important reassurance

A tax balance due notice can feel frightening, especially when the deadline is close. The safest first move is not to solve everything at once, but to stop avoidance: verify the notice, protect essentials, and ask for an affordable route forward.

Scope note

These are first steps to stabilise the next few days. Later decisions, including whether the bill is correct, whether your tax return or tax code needs changing, or whether you need specialist tax or debt support, may need professional or specialist help.

Important note

This is general information, not legal, tax, financial, debt, therapeutic, or professional advice. Options depend on the type of tax, the issuer, where you live in the UK, and your circumstances. If you are unsure the notice is genuine or you cannot meet basic living costs, prioritise safety, verify through official channels, and get free debt advice.

Additional Resources

Closely connected guides that may be useful during the same situation or its immediate aftermath.

About this guide

This guide was produced and is maintained by PanicStation.org using its published editorial process. Official and specialist sources are checked where relevant, and AI-assisted tools may be used for drafting, organisation, and consistency checks. The site operator remains responsible for publication, revision, and removal decisions.

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