HMRC tax debt and Time to Pay tracker
Tax debt is the most common driver of UK company insolvency, and HMRC is the largest creditor of failed companies.This tracker draws on HMRC performance data and National Audit Office reporting to show the scale of company tax debt and how Time to Pay arrangements are being used. HMRC would generally rather agree a realistic instalment plan than force a company under, which is why our Time to Pay affordability calculator exists. HMRC performance data and NAO reports
Source: HMRC performance data and NAO reports · Updated quarterly, in line with HMRC performance reporting. · Last reviewed June 2026.
| Tax | Why arrears build | Director risk |
|---|---|---|
| VAT | Collected from customers but spent on cash flow | High: HMRC enforces VAT firmly |
| PAYE and NIC | Deducted from wages but not paid over | Personal Liability Notices possible for some NIC |
| Corporation Tax | Falls due after the year end on profits | Standard, but compounds with other arrears |
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Methodology and source
This tracker draws on HMRC performance data and National Audit Office reporting to show the scale of company tax debt and how Time to Pay arrangements are being used. HMRC would generally rather agree a realistic instalment plan than force a company under, which is why our Time to Pay affordability calculator exists. Where arrears are unaffordable, the company may need formal rescue or closure.
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