HMRC Arrears

 

 

 

Hi I’m Chris from Real Business Rescue, back with another director advice video to help businesses in these challenging times.

A common theme at the moment is HMRC pressure – that means being chased for tax arrears such as VAT, PAYE and Corporation Tax amongst other forms of tax debt.

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It’s been said that HMRC eased off a little during peak Covid times, aware that businesses were struggling with lockdowns and reduced trading, but now it seems that breathing space is evaporating and the Revenue’s patience is wearing thin. We’re speaking with directors every single day and what we’re hearing is that HMRC are becoming more and more aggressive in terms of recovering unpaid tax.

It's a familiar situation as HMRC is the most common business creditor, but that doesn’t mean it should not be taken seriously. They have extensive debt collection teams at their disposal and they will not hesitate to exert more pressure on your business if you simply ignore their letters and calls.

Once you miss a payment deadline you can expect to receive a warning letter, asking you to bring your account up to date. If you remain in arrears after this point, the pressure placed upon your company will increase considerably to the point where a HMRC Enforcement Officer could turn up at your business premises, and even seize company assets depending on the severity of the debt. The final straw for HMRC, if they’re still unsatisfied with the repayment situation, is to petition the court to force your company into compulsory liquidation.

So, if you are being chased for non-payment of tax, or if you are worried you may soon fall into arrears with HMRC, the best piece of advice is to take action at the earliest possible opportunity.

Left alone, the problems you are facing will only get worse; however, if you are open and honest with HMRC you may be surprised at their willingness to negotiate with you. We can help you with this, just like we help thousands of directors every year. If a negotiation agreement cannot be reached with the Revenue, we can explore other ways of dealing with your tax arrears, helping to ease the pressure your company is currently under.

Contact Real Business Rescue, ask for Chris, and we can take it from there…