The taxman is coming down hard on firms who owe money to HMRC, and it’s the SMEs who aren’t aware of their options that are suffering the most. But, despite some hard-hitting figures, all may not be lost if your business finds itself late paying tax.
According to figures recently published by the Insolvency Service, there has been a dramatic escalation in business winding-up orders by the HMRC, and total liquidations in the first quarter of 2015 has subsequently risen to 904 (an increase of 9%).
To highlight the relevance of this trend, in 2014 we saw 3,751 compulsory liquidations, and as we’ve previously mentioned, the construction industry was hit hard; making up around 15% of that number.
At Funding Options, we intend to always remind businesses of the dangers of avoiding or delaying the repayment of tax bills, and these recent stats show that the taxman is as tough as ever. Playing chicken with HMRC is dangerous, and we’re starting to find that the risk here is the existence of the business itself, not just a slap on the wrist.
Read our guide on urgent cashflow solutions to help pay unexpected tax bills
Given the inconsistent nature of the way tax is chased, we frequently see business deeming it easier to wait until chase-up letters are sent; but we would certainly always recommend having a plan in place way before any contact is made from HMRC. One of the main reasons for this is that your bank or current lender may refuse to lend to you, especially with an outstanding tax bill.
Always try to seek as much advice as possible on this topic, for instance there is plenty of information on the gov.uk website but if you feel your circumstances are changing there are always other options available – this includes finance to help cashflow, or emergency loans. These are typically in place to, ultimately, combat a problem that is fast approaching; it is well worth looking into the finance options available to you, especially if your usual safety buffers have been exhausted.
We can help you manage your cashflow
So, we all know paying off tax bills takes a huge chunk out of your coffers, and it is never a time of year business owners look forward to. However, as part of a business’ obligation to pay VAT it is important to be able to comfortably manage these payments year on year, whilst maintaining a comfortable level of working capital so you can continue running your business successfully.
There is a huge assortment of cashflow options that have been created with the sole intention of helping you maintain healthy levels of cashflow at all times. This even includes unexpected costs; and, although all great business owners are well aware of their duty to HMRC, sometimes it’s difficult to predict when you’ll have a shortfall.
For help finding finance, call our team on the number below, read our guides, or find out if you’re eligible for finance by applying online.
0845 366 4199
The post Late paying tax? Pay up or get finance. Here’s why…. appeared first on Funding Options: business finance, made easy..
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