Can't Afford Your Tax Bill? Here's What to Do Next
- Kate Fisher
- Feb 19
- 3 min read
Updated: Feb 20
Every small business owner knows the feeling: tax season arrives, and suddenly, there’s a bill you weren’t quite prepared for. If you’re struggling to afford your tax bill, you’re not alone. Many small business owners put their heart and soul into their work, only to be caught off guard by financial obligations they didn’t anticipate nor prepare for.
But don’t panic! There are steps you can take to manage the situation effectively and prevent it from happening again in the future.
1. Don’t Ignore It – Take Action Immediately
Ignoring your tax bill will only make things worse. Interest, penalties, and even legal action can follow if you don’t address the issue promptly. As soon as you realise you can’t pay, reach out to HMRC (His Majesty’s Revenue and Customs) or your accountant for advice.
2. Check for Errors & Understand Your Tax Bill
Before assuming the worst, review your tax return to ensure there are no errors. Small mistakes can lead to inflated tax liabilities, and correcting them might reduce the amount owed.
3. Set Up a Payment Plan with HMRC
If you can’t pay in full, HMRC offers a Time to Pay (TTP) arrangement, which allows businesses to spread their tax payments over an agreed period. You can apply online or contact HMRC directly to discuss your options. https://www.gov.uk/guidance/find-out-how-to-pay-a-debt-to-hmrc-with-a-time-to-pay-arrangement If you show HMRC that you are making an effort to pay some back, little bits at a time, they are usually happy for you to do that, you just need to speak with them first.
4. Assess Your Cash Flow & Prioritise Payments
Take a deep dive into your cash flow. Are there any unnecessary expenses you can cut? Can you defer other payments temporarily? Prioritise your tax bill to avoid compounding financial issues.
5. Explore Business Funding Options
Short-term financing, such as business loans or invoice factoring, might be an option if you need immediate cash flow relief. However, proceed with caution—taking on more debt should be a last resort. If this is route you're thinking of taking, we offer these services, so please speak with us so we can guide and support you with the best option. Book a call.
6. We’ve Helped Many Clients in This Situation
We have many clients coming to us saying they’ve received a huge tax bill and can’t afford it. The most important thing is to act fast—ignoring it is the worst thing you can do. For now, we work out a realistic payment plan to get you through the immediate crisis. But to truly get ahead, you need to plan for the future—and that’s where we come in.
7. Prevent Future Tax Stress with a Cash Management Plan
If this tax bill has caused you stress, it’s a sign that your business finances need a structured approach.
At Fisher & Co Financial, we specialise in helping small business owners like you take control of their cash flow and financial future. Our Cash Mastery Programme provides one-on-one financial support, and a unique approach ensuring you always have money set aside for taxes, expenses, and growth.
8. Get Expert Support – Don’t Do It Alone
You work hard in your business, but managing finances can feel overwhelming. That’s why we offer personalised financial coaching designed to help you navigate tax obligations, manage debt, and build a profitable business without the financial stress.
Book now to plan ahead for your next tax deadline and avoid surprises. Don’t wait until it’s too late—get started today.
