Act immediately — and ideally seek professional advice before responding. An HMRC Debt Management letter means HMRC is actively pursuing arrears but enforcement has not yet begun. At this stage a Time to Pay arrangement is typically still negotiable, and the full range of restructuring options remains available. Directors who seek help at Debt Management stage consistently achieve better outcomes than those who wait until HMRC Enforcement contacts them or a winding-up petition is threatened. Do not ignore the letter — HMRC's next step after unanswered Debt Management correspondence is escalation to their Enforcement team, which has formal legal powers including distraint and the ability to issue winding-up petitions. If the arrears cannot be cleared in the short term, professional support in negotiating a Time to Pay arrangement significantly improves the chances of a favourable outcome.
What should I do when I receive an HMRC Debt Management letter?
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