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<p>No estimate can be provided for the number of people who have fallen into debt,
or who have been declared bankrupt, as a result of the loan charge. Falling into debt
or being declared bankrupt can occur for many reasons, not necessarily as a direct
result of a loan charge liability.</p><p>HMRC are not always the only creditor; some
individuals may fall into debt or are declared bankrupt as a result of a non-HMRC
debt and some individuals may choose to enter insolvency themselves based on their
overall financial position.</p><p>HMRC only ever consider insolvency as a last resort
and encourage taxpayers to get in contact to agree the best way to settle their tax
debts. Anyone who is worried about being able to pay what they owe is encouraged to
get in touch with HMRC as soon as possible on 03000 599110. Where a taxpayer is unable
to pay their debt in full HMRC will work with them to agree an instalment arrangement
based on their individual financial circumstances, and there is no maximum length.</p><p>The
Government recognises that tax burdens can add significant pressures. HMRC also recognise
that some taxpayers need extra help because of their individual needs or circumstances.
HMRC are committed to identifying and supporting taxpayers who need extra help with
their tax affairs.</p><p>HMRC have signposted the extra help available to taxpayers
in correspondence and on calls. Staff look out for indications that a taxpayer may
need extra support, and where appropriate will transfer them to an Extra Support adviser
who has the skills and knowledge needed to help them.</p>
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