A study by Premium Credit reveals clients owe an average of £120,000 in taxes, with 94% of accountants noting more clients struggling to pay. Income tax issues have risen significantly, along with difficulties in meeting VAT and Corporation Tax payments. Factors include tax increases, reduced profit margins, and future rises.

Looking ahead, accountants anticipate more clients using HMRC’s Time to Pay scheme. Currently, only 25% utilize it, but 63% expect this to increase. There’s also a prediction of increased HMRC bailiff involvement in seizing assets for unpaid taxes. 94% of professionals believe clients would consider a service to spread the cost of tax bills.

Jennie Hill, from Premium Credit, highlights the challenges faced by clients in settling tax bills and emphasizes the need for practical solutions like monthly payments. Accountants and financial advisers play a crucial role in assisting clients facing tax problems.

Read more at Yahoo Finance: Accountants report rising client struggles