Falling behind with HMRC — a Self Assessment bill, VAT or tax credit overpayment — is stressful, and HMRC is a determined creditor. But tax debts can be included in a Scottish debt solution such as a Debt Arrangement Scheme, Trust Deed or sequestration. Here’s an honest look at what’s possible.
The solutions we advise on are debt solutions, not loans; some are forms of insolvency, are recorded on a public register and will affect your credit rating. Your initial advice is free and there’s no obligation; if you go ahead, fees apply and are shown to you in full first. We’re a commercial service — free, independent debt advice is also available from MoneyHelper and the Scottish Government.
If you can’t pay a tax bill, the worst thing to do is nothing — HMRC has strong recovery powers. But an HMRC debt is, in most cases, an ordinary unsecured debt for the purposes of a Scottish debt solution, which means it can be included alongside everything else you owe.
Tax arrears can go into a Debt Arrangement Scheme (DAS) (repaid in full with interest frozen), a Protected Trust Deed (qualifying arrears you can’t afford may be written off at the end, subject to creditor agreement and not guaranteed), or sequestration. This is especially common for self-employed people whose income has dropped.
HMRC will sometimes agree a ‘Time to Pay’ arrangement directly, and it’s always worth exploring that too. We’ll give you an honest view of every route, and point you to free, impartial advice.
We look at what you can afford and bring your HMRC arrears together with your other debts into one manageable monthly payment.
We go through your income, outgoings and debts — including what you owe HMRC — to find a realistic payment.
Through a DAS or Trust Deed you make a single monthly payment, shared among your creditors including HMRC.
Once a DAS is approved or a Trust Deed protected, creditors are bound by it and further recovery on included debts stops.
Free, confidential advice with no obligation. Find out in minutes how to deal with your tax debt.
See if you qualify →For the right person, these solutions offer real relief. Here are some of the main advantages.
Bring your unsecured debts together into a single monthly payment based on what you can realistically afford.
We deal with your creditors directly, so you no longer have to liaise with them yourself.
Once your solution is in place, interest and charges on the debts included are frozen so the balance stops growing.
Dealing with Scottish debt is all we do, so the advice you get is tailored to the solutions available where you live.
This is a serious step and isn’t right for everyone. We’ll fully explain the implications and check any solution is affordable, achievable and suitable — another option, or free impartial advice, may be better for you.
Most HMRC debts can be included and dealt with like other debts, but HMRC has strong powers and some liabilities (for example certain penalties or fraud-related sums) may be treated differently. We’ll give you an honest, specific view.
A Trust Deed or DAS affects your credit rating and can make obtaining credit harder for a period. If you’re already behind, your rating is likely affected already.
A Protected Trust Deed is recorded on the public Register of Insolvencies; a DAS on the DAS Register — both searchable.
Where debt can be written off, how much depends on your circumstances and creditor agreement. Nothing is promised.
With priority debts, enforcement can move quickly. The sooner you get advice, the more options you’ll have.
No single solution is right for everyone. We’ll always check whether another route would serve you better first.
If the following sounds like you — especially if you’re self-employed — it’s worth free advice on your tax debt. There are other factors we’ll assess, such as your property status and income.
HMRC acts quickly, so early advice gives you the most options. Get a clear, honest picture.
Check if you qualify Free initial advice · No obligation · Fees apply only if you proceed and are shown in full firstYour initial advice is free and there’s no obligation. Trust-Deeds.co.uk is a trading style of My Debt Plan Ltd — a commercial, profit-seeking service, paid for the debt solution you enter into.
If you go ahead with a Protected Trust Deed, your trustee is paid a fixed administration fee plus a further fee based on a percentage of the funds collected during the Trust Deed. These fees are paid from the monthly payments you make, before money is distributed to your creditors — so there is no separate upfront fee. On a Debt Arrangement Scheme, a fee is taken from your monthly payment to cover administering and distributing it to your creditors. Whichever route suits you, all fees are explained and disclosed to you in full before you sign anything.
Each suits a different situation. We’ll explain the advantages, disadvantages and risks of each — and whether dealing with HMRC directly might be better.
A Scottish Government scheme to repay your debts in full through one affordable payment, with interest and charges frozen and your home and car protected as long as you keep up the payments. It will still affect your credit rating.
Learn about DAS →A Scottish alternative to bankruptcy for unsecured debts over £5,000. One affordable monthly payment, typically over around four years, after which qualifying unsecured debt you can’t afford is written off (subject to creditor agreement, not guaranteed). A form of insolvency recorded on a public register.
Learn about Trust Deeds →The Scottish form of bankruptcy. Most, if not all, unsecured debts are written off and creditors must stop contacting you, but it’s recorded on a public register, affects your credit rating and carries restrictions while you’re bankrupt.
Learn about sequestration →Find out in minutes how to deal with your HMRC or tax debt in Scotland. It’s free, confidential and there’s no obligation.
Answer a few quick questions about your situation and a debt advisor at My Debt Plan Ltd will be in touch to talk through your options. It’s free, confidential and there’s no obligation.
See if you qualify →Prefer to speak to someone? Call us on
0161 464 0870Mon–Fri 9am–5pm · Private & confidential, no obligation
Free, independent debt advice is also available from MoneyHelper, StepChange, National Debtline or Citizens Advice Scotland.
Straight answers to the questions people ask most before choosing a Scottish debt solution.
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