“Please pay £XXXX. We have written to you about paying your Corporation Tax but you still owe the amount shown above. We will now pass your debt to a Debt Collection Agency.
There is still time to stop us taking this action but you need to act fast. We are still charging you interest daily. You are incurring more costs every day.
Corporation tax is due for every limited company nine months after the company’s accounting period has come to an end, i.e. the company’s year-end was September 30 which means the tax is due at the end of June the following year. However, if you are late paying this tax, HMRC will not be best pleased and inundate you with letters demanding payment whilst adding interest to the amount due.
If you are unable to pay your corporation tax, the company is insolvent. Insolvency is defined by being unable to meet tax liabilities and you need to speak to a licensed insolvency practitioner as soon as possible – you can do this free of charge in a one-to-one setting at your nearest Real Business Rescue office.
HMRC isn’t often renowned for being easily negotiable but one potential option is to approach them, be honest about your situation, and try to arrange a Time To Pay agreement. However, if the debt cannot be paid off in one year, HMRC will not negotiate and the debt must be paid in full which can have dire consequences for not only your business but also you personally – particularly if you owe the company money in the form of an overdrawn director’s loan account.
17th April 2019
HMRC applied to see more than 4,000 UK companies closed down over the course of 2018 and is being too aggressive in its pursuit of tax-related debts.Read More
12th April 2019
British high streets saw the sharpest rate of net store closures on record over the course of last year, according to a new set of figures.Read More