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
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...
What people say...
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.
We Help With Most Debts - Not Just VAT!
* Mortgage debt can be included if you no longer own the property in question.
Prefer to talk? Call 0161 808 8811
Open til 7pm Monday to Friday
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.
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.
100% FREE ADVICE
Get information today on your available options
Dealing Confidently With HMRC
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
Take the first step towards a clearer financial future and speak to our team today.
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.
Apply for our eligibility check
Speak to our debt specialists
Choose your debt solution
We’ll handle the rest
VAT Debt FAQ's
What is VAT debt?
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.
Can I include VAT debt in an IVA?
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.
Can VAT debt be included in a DMP?
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.
Is VAT debt covered by a DRO?
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.
What happens if I ignore VAT arrears?
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.