It has to be said that if you are concerned because you have not been able to pay your tax on time, don’t panic. There are thousands of others just like you, and it’s not the end of the world.

Firstly, don’t plan around a guess. Check that the tax that you think is due has been calculated correctly. The tax system is not simple, and mistakes can happen. You may like an accountant to check your figures. There may also be other expenses that you could have claimed that will actually reduce the tax you have to pay.

Determine what you can pay now. It is frequently the case that people find themselves with an unexpectedly high bill not previously budgeted.

These days, there are plenty of lenders who will finance tax payments to spread them over time. However, interest charges can be very high. The preferred lender is generally HMRC itself.

Ideally, you should contact HMRC before the tax is due to ask for a Time to Pay arrangement. The payments will include interest, but at a reasonable rate and will stop penalties from being added. They will spread the payments over a period, generally up to a year.

Although Self-Assessment Income Tax payments are topical at the moment, this advice applies equally to Corporation Tax, VAT and indeed to any other taxes. Generally speaking, HMRC staff are very amenable to coming to an arrangement and helping you out of a hole. Very different from a few years ago.

Remember, ignoring the problem will not make it go away, and in all probability is the one strategy that almost always makes things worse.

It’s just a cash flow problem!