Category Archives: Unpaid Taxes – Advice For Small Firms

Unpaid Tax Advice For Small Business

Inland Revenue Tax Collection Problems.

  • Are the Inland Revenue pushing you for payment of unpaid taxes?
  • Are you not sure how to deal with them?
  • Finding it stressful being pushed to find the cash?

In recent months there has been a hardening of the attitude relating to unpaid or outstanding income and corporation taxes. You may remember in 2008/9 there was a good deal of help available. The revenue were positively being over helpful with statements from the UK Treasury promising as much help as possible.

That seems to have changed dramatically in the past couple of months – with the revenue increasingly moving to legal action and in some cases without further notice.

It is vitally important you follow the steps below before you enter into a conversation with the revenue about repayment of taxes due.

  • Get a financial plan together – understand what the business can afford before agreeing to make any repayments.
  • Sort out Cash Flow issues – to ensure your business is doing the very best it can with the resources available.
  • Get pushy with your late payers – or at least make it easy for them to pay.
  • Independent guidance – get help drawing up and plan with third party help. This will create a breathing space for you.

I can help. With over twenty years of working with small firms I have seen it all and can help no matter what the issue is.

UnPaid Income Tax or Corporation Tax, VAT or National Insurance payments can all be negotiated on your behalf.

We will take over all negotiations with the Inland Revenue allowing you to continue running your business and do our best to stop your firm being closed.
The Inland Revenue are becoming more aggressive with their Debt Collection, and are using “distraint” which means taking equipment and  vehicles in lieu of payment, of course this means that when these goods are sold at auction they will not produce anywhere near the amount required in order to settle the amounts owed.
For you this is a double whammy!
Let me help you before you get into trouble.

If you need to enter into any agreements with the Inland Revenue over the payment of funds you should get in touch today in order for us to work out a plan before it becomes a problem.
The report from The Telegraph outlined below covers  some of the issues.

In a clear sign of a more aggressive approach from HM Revenue & Customs, the tax authority used its powers of “distraint” on companies almost 11,000 times over the 12 months to April 2012. This compares with just 5,520 comparable cases in the previous year.

The powers allow HMRC to visit a company’s premises without warning in order to collect unpaid taxes. Companies then have five days to settle their bills or face having key assets removed and sold – all without a court order.

Leasing firm Syscap, which obtained the figures, said the taxman is now using this method to collect a broader range of outstanding bills. While typically used to tackle unpaid payroll-related taxes, Syscap said overdue corporation tax bills are increasingly being tackled through distraint.

Philip White, chief executive of Syscap, said: “If a business’s assets are seized and it can no longer fulfil
customer orders, then that could easily and quickly spell disaster. “HMRC is unlikely to be able to auction off the assets at anything like their real value to the business, and the proceeds of the sale may not even cover the outstanding tax bill.

In those circumstances the business would still face court action to recover the balance.”

Contact me today using this  form or call on 0774 007 6226 or 0845 226 9106 in order to have a conversation in confidence.

Richard Smith