VAT Debt Help & Advice
Worried about VAT arrears? We’ll help you understand what to do next, deal confidently with HMRC, and find a repayment plan that fits your situation.
- Write off 75%* of unaffordable debt
- One lower monthly payment
- Stop creditor hassle and bailiffs
- Access mental well-being services
Your credit rating may be affected if you opt for a debt solution.
Rated Excellent
100% FREE ADVICE
Get information today on your available options
Struggling To Keep Up With VAT Payments? We Can Help
VAT debt can build faster than expected, especially when cash flow is tight or invoices take longer to clear. For many business owners, it’s not about avoiding payment, it’s about juggling competing costs to stay afloat.
If you’ve missed a VAT deadline or owe arrears to HMRC, it can feel like the pressure is mounting from every direction. The good news is that there are structured ways to bring things back under control. With the right support, you can stop penalties from escalating and protect your business from further strain.
As seen on:
We Help With Most Debts - Not Just VAT Debt!
*Mortgage debt can be included if you no longer own the property in question.
Example Of An IVA
UNSECURED DEBTS
Your Monthly Repayments:
Find out for FREE what debt help is available to you
Subject to creditor acceptance. Payment subject to individual circumstances.
Credit Rating may be affected. Fees apply, subject to individuals circumstances.
Reasons To Choose PennyPlan
- Stop all interest & charges
- Write off debt
- Access well-being services
- Reduce monthly payments
How VAT Debt Builds Up
VAT debt often starts small but grows quickly. A late return, slow customer payments, or an unexpected expense can create a shortfall. When this repeats, arrears and penalties stack up and before long, the numbers stop adding up.
It’s rarely about mismanagement; most people simply hit a rough patch. But as the interest and charges grow, the pressure can become unmanageable. If that’s how you’re feeling, speaking to a specialist can help. PennyPlan advisers can review your full financial picture, explain your rights, and guide you through your next steps.
Debt solutions like an Individual Voluntary Arrangement (IVA) could help you to regain control of your finances.
Ways To Manage VAT Debt
There are many routes to deal with VAT arrears, but the right approach depends on how much you owe and whether your debt is tied to a business or personal finances. Our advisers can help you understand which option is most suitable for your situation.
IVA
Individual Voluntary Arrangement
If you have wider unsecured debts, such as loans, credit cards, or tax arrears, an IVA could help you combine them into one affordable monthly payment. VAT debt can sometimes be included, but HMRC usually expects full repayment within the plan term and ongoing VAT compliance.
Additional Options
Debt Management Plans (DMPs) and Debt Relief Orders (DROs) are less suitable for VAT debt, as HMRC rarely accepts these debt arrangements. However, they may still apply if you have any other personal debts. Our team can explain what solution fits your circumstances best.
TTP
Time To Pay Arrangement
HMRC often allows businesses to spread VAT arrears across manageable monthly instalments through a structured Time To Pay plan. This flexible VAT debt arrangement helps ensure you are compliant, and eases immediate financial pressure on your business.
Find Out For FREE What Debt Help Is Available To You
Get Help With VAT Debt Today!
We’ve helped people across the UK take control of their debts and get their lives back on track. Our trained advisers will assess your individual situation and guide you towards the best way to manage and resolve your finances.
Do I Qualify
For an IVA?
100% FREE ADVICE
Get information today on your available options
Get Help With Bank Debt Today
If you’re worried about letters or calls from HMRC, it’s best not to wait. Acting early can stop penalties growing and open up more options for repayment.
At PennyPlan, we’ll take time to understand your situation, explain every possible route, and help you communicate confidently with HMRC. You don’t have to face the pressure alone, confidential, practical support is just a message away.
Take the first step towards a clearer financial future and speak to our team today.
- One lower monthly payment
- Write off 75%* of unaffordable debt
- Freeze interest & charges
- Stop legal action including bailiffs
- Receive FREE well-being sessions
What Happens If You Can’t Pay VAT Debt
If VAT arrears remain unpaid, HMRC may add penalties and interest or pass the debt to a collection agency. In more serious cases, they can issue enforcement notices, seize assets, or begin winding-up proceedings against a business.
These steps sound severe, but they don’t happen overnight. Opening a dialogue early can make a big difference, and we can help you do that in the right way. Together, we’ll look at your finances, build a repayment plan, and help you protect your livelihood.
Tackle Your Debt And Your Mental Health In One Place
Our team are committed to getting your finances and well-being back in top condition
Apply for our eligibility check
Find out if you match the minimum criteria we require to enter you into one of our IVA plans
Speak to our debt specialists
Speak to our friendly debt specialists, who will explain all the options available to you.
Choose your debt solution
Now you have all the options available, you can make an informed decision that is right for you and your family.
Do I Qualify
For an IVA?
What Our Customers Say About Us
Maria
3 days ago
PennyPlan were extremely professional and genuinely caring, I am very happy that I made the call and now have a plan in place and peace of mind. From the first contact to the signing of the agreement it was straight forward and simple plus the staff really are exceptional in the way they listen and understand’ I couldn’t have asked for a better company.
Emily
4 days ago
For over a decade I have kept my money worries to my self away from friends and family one phone call with Leah and I had laid it all bare without a second thought nothing shocked her and nothing wasn’t sortable I’m forever grateful I stumbled across this company and no longer have to worry about money on my own. Highly recommend!!
Daniel
4 days ago
PennyPlan offered insightful, professional and empathetic support throughout my insolvency. Declan in particular was friendly, personable and knowledgeable, and a massive help throughout the process. They offer a no pressure service and allow you to make the best decision for yourself. I highly recommend these guys for anyone struggling with debt.
Mark
1 week ago
I was hesitant in applying for an IVA, But my mind was put at ease on the first call. The whole process was explained to me with complete care and understanding and I didn’t feel judged at all. Since being accepted for the IVA my mental health has improved so much and I now don’t worry about how I am going to put food on the table each week.
VAT Debt FAQs
VAT debt occurs when a business fails to pay its VAT bill on time or in full. It can include unpaid returns, penalties, and added interest from HMRC.
Yes, VAT debt can be included in an IVA, though HMRC usually expects the amount to be repaid in full over the course of the plan. You’ll also need to stay up to date with future VAT payments.
Sometimes, but HMRC doesn’t always agree to informal arrangements like DMPs. You may need a separate Time To Pay plan for your VAT arrears.
In most cases, no. VAT debt isn’t usually treated as a qualifying debt in a DRO, so other forms of support are likely more suitable.
HMRC can add penalties, take enforcement action, or refer the debt to collection agencies. Getting advice early can help you prevent things from reaching that stage.