The current economic problems faced by companies are not convincing HMRC to go easy on them. New figures just released show that HMRC are responsible for around half of the petitions submitted for the closure of companies. These figures obtained by UHY Hacker Young showed that over the past six months, HMRC had lodged 43 per cent of all ‘wind-up’ positions.
UHY Hacker Young commented that while banks have been asked to go easy on debtors, it seems that HMRC’s main priority remains to maximise debt recovery. Those having difficulty are advised to apply for the Time to Pay scheme although HMRC are making it more difficult for people to utilize this scheme if they have used it previously.
UHY Hacker Young’s Nick Hancock stated: “Businesses will be concerned about HMRC turning the screws after the election as it strives to improve the public finances. If a business has unpaid tax and does not have a ‘Time to Pay’ agreement in place, HMRC is still prepared to pull the plug on that business to recover what is owed.”
He continued: “The most important message for businesses is that they cannot allow themselves to fall behind with tax payments and then hope for HMRC’s good will.”
Hancock concluded: “They have to open up a dialogue with HMRC as soon as they foresee cash flow problems and negotiate a realistic ‘Time to Pay’ agreement.”