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HMRC Tax Debt Problem 

HBG Advisory supports HMRC Tax Debt Problem.

When running a business using the platform and protection of a limited company, many company directors struggle to maintain the solvency of their business. Much experience company cash flow problems. The current Coronavirus COVID-19 pandemic has hit every aspect of business within the UK and the rest of the world.

Priorities differ for many businesses to remain afloat. Nevertheless, one aspect of business that falls behind is TAX.

In the UK, HMRC is the biggest creditor of companies. (Please read why is the HMRC biggest business creditor) Unfortunately, the impact of the pandemic has however increased the debt owed to HMRC. Consequently, tax arrears have grown, and HMRC has put over £50 billion so far supporting our economy.

Therefore, should you struggle to manage your tax liabilities for you and your limited companies?

HBG Advisory offers robust, experienced advice to individuals and company directors across the UK, and those living abroad with companies registered in England and Wales.

Please contact a member of the team at HBG Advisory for free, confidential initial advice.

HMRC Tax Issues Advice

  • Consequences of Missing an HMRC Bill Payment?

If you cannot pay your Tax? Contact HMRC immediately and negotiate with the HMRC to clear HMRC debt.

  • Debt Advice and Help with Tax Arrears.

Whether large or small, all companies will however have to engage with HMRC throughout their existence.

  • What if You Can’t Pay Your Tax Demand?

Suppose your company is having problems meeting its tax bill. Therefore, you may agree on an arrangement with HMRC, which allows you to pay your Tax in instalments over a more extended period. Referred to as an HMRC Time to Pay (TTP) arrangement.

  • Dealing with HMRC Debt Collectors.

Having a tax demand you are unable to pay requires you to act quickly, contacting the office as detailed on the top right-hand side of the letter (essential). Do not avoid negotiating with the HMRC. Ignoring their letters will then not help you clear HMRC debt!

  • Receiving threatening letters from HMRC.

HMRC are adept at collecting Tax. As time goes by, less and less tax remains unpaid in the UK, mainly due to HMRC investing in a new computer system that speeds up the collection and traces due tax. Gone are the days of Prince John and Robin Hood.

  • HMRC use of Debt Collection agencies.

HMRC employs third-party debt collection agencies to pursue taxpayers on their behalf, along with their enforcement agents.

  • Directors’ Redundancy Payments.

Many company directors fail to claim their entitlement when made redundant. However, when the limited company commences liquidation, directors usually know their employee’s rights about statutory redundancy payments, which they may claim if they worked for the business for two years or more. 

Please find further detailed answers to Directors Redundancy Claim.

  • HMRC Notice of Requirement?

HMRC may issue a business with a Notice of Requirement for VAT security. HMRC prompts it if it considers a risk has escalated regarding not receiving payment of VAT.

  • Do HMRC charge late interest, and if so, how much?

As a taxpayer, it remains your duty to ensure you pay your PAYE and VAT on time. However, you will not receive reminders from HMRC requesting payment.

  • Striving to Strike a Company off with HMRC objecting.

Company directors can face genuine frustration when trying to dissolve a company, when they do not pay tax, but still have HMRC objecting to their companies striking off.

Often directors ask can HMRC pursue a dissolved company?

  • I can’t pay VAT. What are my options?

Suppose you or your company are unable to pay your VAT debt. Then, HMRC will react if you fail to approach them. HMRC will issue surcharges and penalties that will increase your business costs only when you reduce operating costs.

For further detailed reading on VAT issues, please read: Can’t pay VAT What Happens next?

  • The outcome of Avoiding a VAT Return Payment.

Your responsibility is to file your VAT on time and make payment before the deadline. Fail to do so, and HMRC can take various actions.

  • Date and deadlines for VAT payments to HMRC

Notably, the deadlines for submitting your VAT return online and paying HMRC any VAT you owe are the same. If hesitant about your VAT return and payment deadline, then view your online VAT account online. For further detailed reading, please view Can’t pay VAT options?

  • VAT Payment Plans?

If you can’t pay your VAT, you should contact HMRC’s Payment Support Service on 0300 200 3835 as soon as possible to inform them.

  • Paying VAT to HMRC.

It remains your duty to ensure your VAT returns are submitted and paid on time if you or your business are VAT registered.

  • HMRC Tax Debt Problem Advice –Arrears of PAYE?

If you face financial hardship and cannot pay HMRC, you probably will have accrued tax arrears regarding Pay as You Earn (PAYE) and National Insurance Contributions (NIC). HMRC has a stringent process and several powers in dealing with late payment, and can therefore quickly identify late payers.

Find out further what happens when the company can’t pay PAYE to HMRC?

  • HMRC Tax Debt Problem Advice – Corporation Tax Arrears?

In April 2017, HMRC cut corporation tax to 19%, the lowest corporate tax rate in the G20. 

At the recent G7 Group meeting of Advanced Countries in London, G7 reached a historic agreement to pay taxes to multinationals worldwide.

G7 Finance Ministers agreed to fight tax avoidance by forcing companies to pay more taxes in countries where they carry out business.

Further, they agreed in principle to a global minimum corporate tax rate of 15% to avoid countries undercutting each other.

For a further detailed reading on when you can’t pay your corporation tax, please read can’t pay Corporation Tax. What next?

  • Personal Liability Notices?

Company directors should be aware that HMRC can personally recover unpaid National Insurance contributions (NICs) from directors if HMRC’s failure was due to fraud or negligence by the company directors.

  • Your company has a ‘Notice of Distraint Issued by HMRC’ served on it.

Once in receipt of distraint, contact HMRC immediately. They can remove it if you engage in negotiations. Do not avoid it. If you wish, seek independent advice from an independent licensed insolvency practitioner. The HMRC is determined when collecting money. Soon, an HMRC distraint officer will be at your premises to take an inventory of assets. If forced, they will then sell them to pay for the Overdue Tax via a public auction.

  • When can directors personally be accountable for the debt of the company?

A Limited Company remains a separate legal entity from an individual.

As such, a limited company provided run correctly offers businesses trading as sole traders or partnerships protection, as the companies’ debts belong to the company, not individuals.

However, directors can fall foul of the company’s debt if they trade while insolvent, fraud, guilty of wrongful trading or misfeasance. Please read ‘Directors Duties and Responsibilities‘.

For further detailed reading, please view, can HMRC hold directors liable for Tax? 

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