Many companies experience tax problems every year, with thousands just struggling to meet payments.Tax arrears for unpaid taxes can soon mount up and can grow for a variety of reasons.
When financial commitments to pay employees, suppliers and utilities are accommodated for, there’s often little or nothing left to fulfil tax requirements. Discovering that you have company tax problems is usually a sign that there are bigger issues within your business that need to be addressed.
Some of the most common causes of tax problems include:
The causes of a company’s tax problems are often down to a fault within the business structure or business plan.
Quite often, there will be deep rooted liquidity problems within the business that need addressing in order to provide financial relief.
Some of the causes may include:
Tax problems should never be avoided or ignored, because they’ll never go away. Making tax payments on a regular and timely basis will help to prevent your tax liabilities from becoming too large and unmanageable.
If your company tax problems are such that you are unable to pay your tax debts and have no viable means of meeting the debt repayments you may face County Court Judgements, bailiff action, followed prosecution and compulsory liquidation. As the consequences are so drastic, it’s crucial that your tax debts are addressed as soon as possible.
A tax payment plan could be just what your company needs to overcome its tax problems. HMRC will want to recover their tax debt, and if you can prove to them that your debts can be cleared through a structured and dedicated payment plan, clearing your tax debts could be easier than you’d thought.