If you are behind with your tax payments, you could find yourself in hot water with HM Revenue and Customs (HMRC). There is no getting away from it, tax arrears have to be paid and HMRC will ensure that they are.
The consequences of tax and VAT arrears
HMRC has various ways of recouping corporation tax, PAYE and VAT arrears. The first is to add penalties, so you have to pay an additional percentage on top of the outstanding sum. If you have only missed one deadline in a tax year, the penalties do not apply. After this, HMRC will add 1% if you miss between one and three payments; 2% between four and six; 3% between seven and nine; and 4% for ten or more missed payments.
If you persist in missing payments, HMRC may take drastic measures to recover your tax arrears. These may include sending enforcement officers to your workplace to seize assets or liquidating your business.
How we can help you with your tax arrears
- Analysis: As business recovery specialists, Stewart Hindley & Partners can get to know your business, straighten out your accounts, find out exactly how much you owe and work out the best way to deal with your tax arrears.
- We can buy you time and prevent HMRC officers from turning up at your door. We will advise you on which of the two following options will be best for your business. The first is an informal Time to Pay (TTP) agreement between you and HMRC. The second is a legally binding Company Voluntary Arrangement (CVA), where the money is repaid over a set time period.
- Best tax arrears solutions: You may feel as though you are constantly under pressure and that your business is struggling to hold its head above water, but we will work hard to find the best solution for you. Stewart Hindley & Partners are here to help businesses to clear tax arrears and to ensure that future payments are made on time.
Tackle your tax arrears now
Whether you are in arrears with your PAYE, corporation tax or VAT, however hard you try not to think about them, they will not simply disappear. So don’t delay – contact us now to find out how we can help with your tax arrears and business recovery.
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