What can you do if you can no longer pay the tax authorities as an entrepreneur?
For many entrepreneurs, the moment comes when a blue envelope not only causes administrative stress, but also real financial worries. A VAT return that has not been paid. Income tax for which you have not made a reservation. Or corona tax debts that you now have to pay off. The Tax Authorities may seem patient, but ultimately take forceful action. And then you are suddenly under pressure.
In this blog we explain what you can do if you have tax debts as an entrepreneur, what you should absolutely not do, and how debt relief can mean a breakthrough.
How do tax debts arise for entrepreneurs?
Tax debts are rarely the result of unwillingness. In practice, we see common causes such as:
- No (or too low) reservation for tax liabilities
- Disappointing sales, causing you to shift priorities
- Ignorance of tax rules (especially among starters or self-employed persons)
- Corona deferral scheme that has expired
- Inadequate administration or forgotten declarations
- Unforeseen expenses such as illness, damage or bankruptcy of a client
It often starts small, but quickly piles up. Especially if you owe taxes for several years.
Why Tax Debts Are So Urgent
The Tax Authorities are one of the few creditors with extensive collection options. Think of:
- Direct collection of money from your bank account (without a judgment)
- Seizing income or assets
- Initiating bankruptcy proceedings
That is why it is crucial not to wait and see when it comes to tax debts. There is no shame in not paying — but doing nothing is a risk.
What you can do: overview and action
If you find yourself unable to pay your taxes:
- Keep reporting.
Even if you are (temporarily) unable to pay. This way you avoid fines for not declaring and you keep control. - Request a payment plan.
The Tax Authorities offer, under certain conditions, a deferral or payment in installments. This only works with openness and clarity. - Let a debt relief organization help you.
With the guidance of a recognized party, more is often possible. Also towards the Tax Authorities. - Avoid new debts.
Make sure that you immediately set aside VAT and income tax from now on. Even if they are only small amounts.
What Zuidweg & Partners can do for you
We have been supporting entrepreneurs with debts, including tax debts, for over 25 years. In collaboration with municipalities, we help you:
- Gain insight into your complete debt position
- Making agreements with the tax authorities and other creditors
- To see if your company is future-proof — and what that looks like
- To regain some air and clarity, both professionally and privately
You are not alone. We know the ways, rules and possibilities. And we do not judge — we help.
Do not wait for reminders or seizure
The sooner you seek help, the more room there is to find a solution in consultation. Even if there are already fines or collections, guidance is still possible. But time is not on your side. So take the first step today.
Do you recognize yourself?
Do you recognize yourself in (part of) this situation and do you no longer want to walk around with worries? We are ready to help you. Do not wait until the problems increase and take control of your financial future today. Click on the button 'Apply for debt assistance now' and take the first important step towards peace and security for you and your company.
