Council tax and fines · 4 min read
HMRC debt: what HMRC can do and how to stop enforcement
Owe HMRC? It can take control of goods, recover money directly from bank accounts in some cases, go to court or petition for bankruptcy. How Time to Pay arrangements work and your other options.
- Fact-checked
- Against official sources
- Last updated
- Next review due
- April 2027
- Applies to
- England and Wales
- Sources
- 3 listed on this page
Independent guidance, not a government service. This page is general information about the law in England and Wales, not financial or legal advice. Debt solutions have fees, risks and consequences. For free, impartial advice, contact MoneyHelper or a debt charity.
The short answer
HMRC has some of the strongest debt collection powers. It can take control of goods (and use force to enter as a last resort for some taxes), recover money directly from your bank account in limited cases, take you to court, or start bankruptcy. The best way to stop this is to contact HMRC early and ask for a Time to Pay arrangement. Tax debts can often be included in formal debt solutions too.
What HMRC can do
| Power | How it works |
|---|---|
| Taking control of goods | HMRC officers can take control of goods to sell. For unpaid Income Tax and Stamp Duty, forced entry is possible as a last resort. |
| Direct Recovery of Debts | For debts over £1,000, HMRC can recover money from bank and building society accounts, as long as at least £5,000 is left across your accounts. You’ll be contacted first and can object or agree a plan. |
| Through your tax code | Smaller debts can be collected by adjusting your PAYE tax code. |
| Court action | HMRC can take you to the county court or magistrates’ court. |
| Bankruptcy | For larger debts, HMRC can petition for your bankruptcy. |
Read can bailiffs take money from my bank account?
Time to Pay arrangements
A Time to Pay arrangement lets you pay what you owe in instalments.
- For some taxes (such as Self Assessment), you may be able to set one up online if the debt is within certain limits.
- For larger or more complex debts, you’ll need to call HMRC.
- HMRC will want to know about your income, spending and other debts, and what you can realistically pay.
- Interest usually continues to be charged.
The earlier you ask, the more likely HMRC is to agree. Don’t wait for enforcement letters.
If you’re self-employed
Self-employed people are particularly likely to owe HMRC, and enforcement can hit both your home and your business. Bailiffs can’t take tools you need for work up to a combined value of £1,350, but business stock and higher-value equipment can be at risk. Read bailiffs and self-employed people. Free specialist help is available from Business Debtline.
Can HMRC debts go into a debt solution?
| Solution | Tax debts included? |
|---|---|
| Breathing Space | Most tax debts are covered |
| Debt Relief Order | Most tax debts can be included, within the £50,000 limit |
| IVA | Yes, but HMRC votes on the proposal and has its own standards for what it will accept |
| Bankruptcy | Most tax debts are included |
Some tax-related debts, such as penalties for fraud, may be treated differently. An adviser can check. Read our IVA guide and DRO guide.
Frequently asked questions
Can HMRC send bailiffs?
HMRC uses its own officers to take control of goods, and it can also use enforcement agents. For Income Tax and Stamp Duty, forced entry to your home is possible as a last resort.
Can HMRC take money from my bank without telling me?
No. Under Direct Recovery of Debts, HMRC must contact you first and give you the chance to pay, object or agree a plan, and it must leave at least £5,000 across your accounts.
Will HMRC accept a payment plan?
HMRC often agrees Time to Pay arrangements if you contact it early and show you can afford the payments.
Sources
How we wrote this article
- Research: written from primary sources such as legislation.gov.uk, GOV.UK and the Insolvency Service, then fact-checked by a second member of our team. The sources are listed above.
- Checked: last checked on . Next review due April 2027, or sooner if the rules change.
- Scope: applies to England and Wales. If you live in Scotland or Northern Ireland, read our Scotland and Northern Ireland guide. It is general information, not personal advice.
- Independence: we are not a government website or service, and we are not connected to any council, court or enforcement company.
- Money: we may receive a fee if we introduce you to a debt advice firm. This doesn't change what we write. How we're paid.
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