All individuals are required to pay tax on their income when it exceeds a certain amount, i.e. your ‘taxable income. Those who are self-employed must submit a Self-Assessment tax form every year, after which HMRC will calculate the tax you owe for the financial year. If you are struggling to pay it is important to act quickly; this is a ‘priority debt’ due to the strong powers held by Her Majesty’s Revenue and Customs (HMRC) to ensure that you pay.
HMRC oversees the administration and collection of all UK income tax. It is not uncommon for companies or individuals to fall behind in their obligations to HMRC. The majority of the UK pay their income tax automatically each month through deductions to their salaries; however, for directors of limited companies or those who are operating as sole traders, the process is different and requires more personal planning.