Thousands of businesses struggle to meet their tax debt repayments every year, so if you find your business is in difficulty and you can’t raise the necessary funds, don’t worry; you’re not alone.
If you believe that you have been charged the wrong amount in tax, you should contact the tax office that issued the payment request. HMRC debts affect a large number of businesses. Over 250,000 companies are subject to a form of payment plan, with many struggling to meet their time to pay plans. As a result, the number of approvals for time to pay deals has been steadily dropping.
Many businesses will ignore their tax debts and hope that they’ll go away, when in reality, this is the worst course of action that you can take. HMRC tax arrears will never just go away. They need to be evaluated and dealt with in a realistic and communicative manner.
It’s always advisable to plan a business cashflow prediction well in advance of tax payments. If your business’ directors don’t believe that the company can generate enough cash to accommodate tax obligations, alternative plans for the business can be undertaken.
Finding that your business is in HMRC tax arrears can be rectified. There are several options available to help businesses experiencing difficulties with tax arrears.