I operate a small landscaping business in the North West of England and with this bad economy I have not been able to pay my taxes on time. There are only 15 employees currently working for my company and although I am managing to keep up with PAYE taxes and NIC, I have not been able to pay VAT timely.
Landscaping services are only a portion of the company as we also sell fertiliser, grass seed, and basic lawn and garden equipment as well as a small selection of garden furniture. Unfortunately, I can’t pay my VAT bill, what are my options? My company isn’t actually ready to be bankrupt and this is the only real bill I have that is late. I believe this is only temporary and that business will pick up so I don’t want to be bankrupt because VAT isn’t paid. What should I do to keep the bailiff away from my door?
The first thing to be aware of is that HMRC will pursue you if you are continually late on your taxes! They, of course, want their money but that is only a portion of what they will look at. As you probably know, it is crucial to convince them that you are not insolvent and that you are not involved in wrongful trading. Racking up bills that you have no intention or wherewithal to pay is a serious matter in the UK.
There are several options you have if you act quickly. Some involve formal court proceedings whilst others may be accomplished informally, out of court. If there is a way to inject capital into your business, you may wish to consider that first. Check out our section on business finance and funding to see if any of those methods are suitable for your needs. It is also possible to undergo a CVA (Company Voluntary Arrangement) through the courts or perhaps HMRC could be contacted to look into their Time to Pay scheme.
In any event, the team at Real Business Rescue would be happy to discuss other alternatives with you at a free-of-charge initial consultation. The key point here is to act quickly to show Her Majesty’s Revenue and Customs that your intentions are honourable and that you are making every effort to act responsibly. To delay would be the gravest mistake of all.
15th February 2017 The growth of what has become known as the gig economy is costing HMRC in the region of £75 million in lost tax revenues every week, it has been claimed.
14th February 2017 Growth in the UK economy will slow down considerably over the course of this year and next, according to the European Commission.
14th February 2017 The Co-operative Bank has been put up for sale in its entirety four years after it came perilously close to collapse before being acquired by US hedge funds.
9th February 2017 Notably strong consumer spending helped to keep the UK economy on track in recent months despite the ongoing uncertainty surrounding the country’s exit from the European Union.
6th February 2017 A majority of big business leaders around the UK feel that the Brexit vote last June and the still unfolding ramifications have had a negative impact on their operations.
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