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HMRC debt letters and Time to Pay — overview
HMRC may write if it says you owe tax, penalties or interest. Some letters talk about Time to Pay — an arrangement to pay what you owe in instalments. This page is a plain-English overview. Always use the figures and deadlines on your letter.
General information only — not legal or financial advice, and not a substitute for an accountant. For free help, contact Citizens Advice or read GOV.UK — If you cannot pay your tax bill on time and GOV.UK — Pay HMRC.
In plain English
An HMRC debt letter usually states a balance (tax, Self Assessment, penalties, interest or a mix) and asks you to pay by a date — or to contact HMRC if you cannot. Ignoring debt letters can lead to stronger recovery action. Paying something and talking to HMRC early is usually better than silence, but get free advice if the sum is unaffordable.
Time to Pay is HMRC’s name for agreeing a payment plan when you cannot clear the bill in one go. It is not automatic: you typically need to contact HMRC, explain your situation, and agree affordable instalments. Terms depend on your circumstances and the type of debt.
Deadlines and escalation (typical)
- Pay-by date on the letter — confirm it in your Personal Tax Account / Self Assessment online services where relevant.
- Contact-by date if HMRC asks you to call or reply before further action.
- Further recovery: unpaid debts can escalate (for example reminders, debt collection steps). Exact powers depend on the debt type — check GOV.UK and the letter.
What to do next
- Check the reference, tax year(s), and every £ amount — tax vs penalty vs interest.
- Sign in to HMRC online services and compare the balance with the letter.
- If you can pay in full by the deadline, use an official HMRC payment route from GOV.UK / the letter.
- If you cannot pay in full, contact HMRC promptly about Time to Pay / payment options — do not wait for the deadline to pass.
- Gather income, outgoings and bank statements if HMRC asks what you can afford.
- Get free advice from Citizens Advice or a free debt adviser if you have multiple debts or the amount is unaffordable.
- Watch for scams: HMRC will not ask you to pay via unusual gift-card / crypto links in a text.
Common mistakes
- Ignoring the letter because “I disputed the tax last year” without checking the current balance.
- Assuming Time to Pay starts automatically without contacting HMRC.
- Paying a scam lookalike instead of official HMRC payment details.
- Missing that Self Assessment filing deadlines and payment deadlines can be different issues.
Free help
More guides: HMRC P800 · Notice to file / late filing · All guides
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