If you’re feeling overwhelmed by mounting tax obligations, you’re not alone. Many individuals and businesses find themselves facing the daunting challenge of income tax debt. But fear not! With expert guidance and effective strategies, you can navigate through this financial maze and emerge stronger than ever.
Before delving into solutions, let’s understand what income tax debt entails. Income tax debt refers to the amount of taxes owed to the government that remains unpaid by the due date. This can result from various factors such as underpayment, failure to file tax returns, or discrepancies in reported income. Regardless of the cause, ignoring income tax debt only exacerbates the problem, leading to penalties, interest charges, and potential legal consequences.
Income tax debt can have far-reaching consequences, affecting both your financial well-being and peace of mind. It can lead to wage garnishment, asset seizure, damaged credit scores, and even legal action by tax authorities. Moreover, the stress and anxiety associated with unresolved tax debt can take a toll on your mental and emotional health. It’s crucial to address income tax debt proactively to mitigate its adverse effects.
Tell us about your current debts and one of one of our experienced advisors will talk you through all the options available.
Dependant on your circumstances and financial situation, we’ll look at the solutions so you can choose an option that suits you.
Once you have chosen a solution, we will take the necessary steps to arrange this for you.
Lucy Novo Deakin is a licensed insolvency practitioner in the UK by the Insolvency Practitioners Association (IPA).
My Debt Plan Ltd provides insolvency solutions to individuals, specialising in IVA’s. All advice given is provided in reasonable contemplation of an insolvency appointment. Where you are not suitable for an IVA, we may refer you to one of our trusted partners who specialise on alternative solutions, and as such we will receive payment for the introduction if you enter into a debt solution with one of our partner companies.
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To find out more about managing your money and getting free advice, visit Money Helper, an independent service set up to help people manage their money.
*Our advice on your options is always free. We will always notify you if a solution you choose has any cost.
**Of 2,381 IVA cases approved between January-December 2023, the average expected write off assuming successful completion is 74%.
A debt write off amount between 25% and 75% is realistic, however, the debt write off amount will differ for each customer upon their individual financial circumstances and is subject to approval of their creditors. Any remaining qualifying unsecured debt in your IVA will be written off, however some unsecured debts will be excluded, such as court fines, child maintenance and student loans, therefore you will need to continue paying these both during and after the IVA.
