Accountants and financial advisers are increasingly seeing clients struggling to pay tax bills, new research from Premium Credit has indicated.

The business finance provider said the average bill they are having difficulty to pay is coming in at £120,000.

Premium Credit’s findings were based on a study of 100 accountants and financial advisers who advise on corporation tax, VAT and income tax. It found that the vast majority of respondents (94%) have seen a rise in clients struggling to pay tax bills in the past 12 months, with more than three out of five (61%) reporting an increase of 10% or more in the number of clients struggling with tax bills.

Trouble paying income tax bills saw the biggest increase, identified by 70% of those questioned. However, the research showed that 40% have seen a rise in clients struggling to pay VAT and 39% a rise in clients struggling to pay corporation tax. On average, 13% of accountants’ and financial advisers’ clients are struggling with tax bills.

The study also found that 94% of accountants and financial advisers believe clients would consider using a service which enables them to spread the cost of their tax bills for a small fee regardless of whether they struggle to pay bills.

“Almost all the accountants and financial advisers in our research are seeing an increase in clients struggling with tax bills and the average bill is substantial,” chief commercial officer at Premium Credit, Jennie Hill, commented.

“Accountants and financial advisers need to engage with clients facing tax problems and offer them practical solutions such as spreading the cost into convenient monthly payments.”

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