• Research shows they expect a rise in clients using HMRC’s Time to Pay (TTP) scheme, and HMRC’s use of bailiffs

Accountants and financial advisers are increasingly seeing clients struggling to pay tax bills with the average bill they are struggling to pay coming in at £120,000, new research* from Premium Credit, a leading provider of finance for businesses, shows.

It found almost all (94%) accountants and financial advisers who advise on tax have seen a rise in clients struggling to pay tax bills in the past 12 months with more than six out of 10 (61%) reporting an increase of 10% or more in the number of clients struggling with tax bills.

Trouble paying income tax bills saw the biggest increase, identified by 70% of those questioned. However 40% have seen a rise in clients struggling to pay VAT and 39% a rise in clients struggling to pay Corporation Tax. On average 13% of accountants’ and financial advisers’ clients are struggling with tax bills.

Tax rises and planned tax rises are cited by 50% of accountants and financial advisers as the main reasons why clients are struggling to pay their tax bills followed by 43% who say clients’ profit margins have suffered. Research** last year found 37% identified tax rises as the major reason, with around 40% saying clients’ revenues had dropped.

Last year 54% selected cost of living pressures as the main reason for problems with tax bills but this year’s study found 30% selecting that as a top three reason for problems with tax.

The research found accountants and financial advisers expect growing use of HMRC’s Time to Pay (TTP) scheme which allows eligible businesses extra time to repay tax arrears usually over a period of three to six months. They also expect a rise in HMRC’s use of bailiffs.

Currently just a quarter (25%) of accountants and financial advisers say 5% or more of their clients use TTP but within three years nearly two out of three (63%) expect 5% or more of clients to be using TTP.

More than four out of five (81%) questioned say they expect the number of clients facing calls from HMRC bailiffs seizing goods for Corporation Tax payments to rise in the next five years with 19% predicting a dramatic increase.

The study found 94% of accountants and financial advisers believe clients would consider using a service which enables them to spread the cost of their tax bills for a small fee regardless of whether they struggle to pay bills.

Jennie Hill, Chief Commercial Officer, Premium Credit (Specialist Finance) said: “Almost all the accountants and financial advisers in our research are seeing an increase in clients struggling with tax bills and the average bill is substantial. Accountants and financial advisers need to engage with clients facing tax problems and offer them practical solutions such as spreading the cost into convenient monthly payments.”

For further information on Premium Credit’s Tax and VAT funding proposition, please visit https://www.premiumcredit.com/products/tax-and-vat

Notes:
* Independent research conducted by Pureprofile among 100 accountants and financial advisers who advise on corporation tax, VAT and income tax during April 2025
** Independent research conducted by Pureprofile among 105 accountants and financial advisers who advise on corporation tax, VAT and income tax during March 2024.