
The Government announced a Debt respite scheme launched, aptly named Breathing Space.
Breathing Space will give those facing financial difficulties space to receive debt advice, or mental health crisis treatment, without pressure from creditors or mounting debts.
There are two types of breathing space: a standard breathing space and a mental health crisis breathing space. Where there is a difference between them, we’ll refer specifically to either a standard breathing space or a mental health crisis breathing space. Where there is no difference, we will simply refer to breathing space.
Under the scheme, people will be given legal protection from their creditors for 60 days, with the most interest and penalty charges frozen, and enforcement action halted. They will also receive professional debt advice to design a plan which helps to get their finances back on track.
And recognizing the link between problem debt and mental health issues, these protections will be available for people in mental health crisis treatment – for the full duration of their crisis treatment plus another 30 days.
People across England and Wales who are struggling to repay their debts could be eligible, and the Government expects 700,000 people to benefit in the first year of the scheme.
Most debts will qualify for this debt respite scheme including credit and store cards; personal and payday loans; overdrafts; utility bills, rent and mortgage arrears; and government debts like tax and benefits.
If you need any further information, feel free to contact us.
HM Revenue & Customs (HMRC) has set itself an ambitious goal: by 2030, 90% of customer interactions should be digital,...
UK corporate law and HMRC guidance have long recognised that transactions between a company and its shareholders are subject to...
The UK Court of Appeal has clarified the VAT treatment of education grants, marking an important shift for schools, universities,...
Buying two or more homes together can trigger special stamp duty and property transaction tax rules across the UK. The...
Submitting a VAT return on time is one of the most important VAT responsibilities for UK businesses. A missed deadline...
HM Revenue & Customs (HMRC) has adopted a significantly tougher stance on VAT investigations for large businesses recently. Investigations into...
From 1 May 2026, the UK VAT road fuel scale charges change to cover the period to 30 April 2027....
Two UK brothers were recently convicted for abusing the government’s film tax relief scheme. Between 2011 and 2015 they submitted...
In a 2026 tax appeal, the First-tier Tribunal (Tax) upheld HMRC’s view that a written-off director’s loan triggers an income...
Recent headlines cite official UK data showing that HMRC spent “£186 million” enforcing the loan charge. The loan charge enforcement...