What happens if you don't pay your tax? HMRC explains how it enforces debts

HMRC has set out in an official guide on GOV.UK what happens when a taxpayer does not settle what they owe. The page was last updated on 4 September 2026 (a change to the list of debt collection agencies).

A conversation first

HMRC states that if someone cannot pay on time, it wants to find a solution that is as quick and as affordable as possible. Unless fraud or a crime is suspected, it first tries to make contact and agree the next steps. It may offer a Time to Pay instalment plan, offset overpaid tax against other arrears, or change the tax code of a person taxed through PAYE. In this way, up to 50% of gross income can be collected through the tax code.

People living in the UK who have a payment problem should contact the Payment Support Service. People living permanently abroad have a separate helpline for non-residents.

Visits and debt collection agencies

If a taxpayer does not respond or refuses to pay, HMRC may visit them at home or at their business, or refer the case to a debt collection agency. The agencies, which are regulated by the Financial Conduct Authority, make contact only by letter, text message or phone, and never visit the debtor. A person authorised to speak on the debtor's behalf has permission valid for 24 hours; for longer, form 64-8 is needed.

Enforcement measures

According to HMRC, these are a last resort, and their scope differs in England, Scotland and Wales. HMRC lists the following, among others:

• seizing and selling goods: in England and Wales this is preceded by a formal notice costing £75, and the fees are £235 plus 7.5% of the part of the debt above £1,500; if the goods are sold at auction, there is an additional fee of £110 plus 7.5% of the part of the debt above £1,500;
• taking money directly from an account in England, Wales and Northern Ireland, where the debt is at least £1,000 and the accounts hold enough money to pay it and cover reasonable living costs;
• court orders: a charge on assets (for example property), deductions from wages, and seizure of money owed to the debtor by a third party;
• in Scotland, a summary warrant, after which the debtor has 14 days to pay or agree instalments.

HMRC says it will not demand the sale of your main home in settling a loan charge or disguised remuneration, and will not require you to draw on pension funds. The debtor's insolvency is the final step.

What this means for you

HMRC has debt recovery agreements with more than 87 countries. If someone does not engage with HMRC, it can ask a foreign tax authority to collect the debt from a person living there or holding assets there. This therefore also applies to people who have left the UK, including for Poland.

HMRC advises responding to correspondence as soon as possible, so that it is clear the taxpayer is not refusing to pay. MoneyHelper offers free debt advice. The identity of an HMRC debt collector can be checked on GOV.UK.