HMRC debt anc credit file

midlander81

So I have been speaking to HMRC today about a tax debt of around £1400 that I owe. I don;t dispute the debt, however I do disagree that they want it back within 12 months. This would cause me problems.

THe advisor said that if I am not able to pay within 12 months then it would be reffered to a debt collection agency (DCA) but that even at this stage, my credit report would not be affected providing that I adhere to any payment plan - does this sound right?

I assumed that referral to a DCA would lead to an immediate credit file entry????

National_Debtline

Hi midlander81


A debt from HMRC will not be registered on your credit file unless they apply for a CCJ. That would then be recorded for 6 years on your credit file, unless you could pay it off within one month of it being made.


HMRC will usually want a tax debt repaying within a 12 month period, although they can consider 36 months, dependent on previous payment history. If you are self employed you can seek more advice on this from Business Debtline (www.businessdebtline.org).


Best wishes


Susie
@natdebtline