Unable to pay your tax bill: these are your options

Always: still file your return

Being unable to pay is no reason to postpone your return. File on time and you avoid a default penalty and keep things clean: there is then only a payment issue, not a filing issue. That makes every next step easier.

Short deferral or a payment plan

For smaller debts you can request a short deferral by phone: you then get up to four months after the final payment date, without paperwork. The condition is a limited debt and no outstanding enforcement orders. If that is not enough, apply in writing for a payment plan of up to twelve months, spreading the assessment into instalments.

Bear in mind that you pay collection interest on the outstanding debt. A deferral is not free credit, but it is many times cheaper than the reminders, enforcement order and bailiff costs that follow if you do nothing.

Preventing this next year

If this year's profit is coming in lower than your provisional assessment assumes, have that assessment reduced immediately; that already eases your monthly burden. Also set money aside structurally in a separate account: thirty to forty percent of your profit for income tax, and all VAT received, because that money simply is not yours. Automate the reservation and a blue envelope will never keep you up at night again.