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HMRC is getting tougher on SMEs with unpaid VAT

SMEs have been bearing the brunt of HMRC taking a much harder approach to unpaid VAT bills, according to a report in Sunday’s Financial Times. http://tinyurl.com/d88d3w2
Its seizure of assets (distraint) doubled in 2012 to 4,746 cases compared to 2,401 cases in 2011. Almost 95% of all HMRC use of distraint have involved SMEs.
HMRC appears to have also been limiting access to the Time to Pay arrangement to help struggling businesses to catch up on overdue payments.
This tighter approach has been variously described as unwelcome, inflexible and aggressive.
Now more than ever unpaid VAT or tax is not a situation to ignore in the hope that it will go away.
It is at times like these when the help and support of a Business Guardian experienced in negotiation with HMRC and in turnaround and restructuring could make all the difference to a small company’s survival.

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