HMRC Debt Management
If you have a problem paying your taxes, you need to hire the services of trusted financial experts to provide you with specialised HMRC debt management and banking advice. If you fail to pay your tax in full, or you are unable to pay your taxes at all, HMRC will keep adding interest to the owed amount, as well as sending demand for payment. This can be a worrying time for many companies, especially as failure to settle your corporate tax is likely to result in insolvency.
The Insolvency Experts have been providing advice and assistance for many years to individuals and businesses unable to pay their HMRC debt, including corporate taxes. We have a team of highly skilled financial specialists able to provide HMRC debt advice and help you negotiate with HMRC. We can advise our clients on moving towards a “Time to Pay Agreement” that protects their financial interests. Our HMRC debt help is tailored to meet the financial needs of your business.
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4 Key Questions on HMRC Debt Management
How does HMRC debt affect your business?
Failing to seek HMRC debt help at the right time from licenced and experienced financial professionals can subject you to many business-related and financial-related setbacks. If you fail to reach an agreement with regards to your HMRC debt management within the given timeframe, HMRC will ask a range of specific questions about your business situation to ascertain whether you are capable of settling the amount owed or not.
HMRC is looking to satisfy themselves that you are making arrangements to pay the debt in good time. HMRC takes an “Enforcement Action” in cases where they learn that an agreement to settle the HMRC tax debt cannot be reached. The action can come in a variety of different forms, including:
- Forcing closure of your business
- Filing a lawsuit against your business
- Hiring the services of a licensed debt collection agency
- Repossessing and selling your assets to recover the debt
- Collecting the amount owed through your pension or earnings.
The above enforcement measures explain why you need to seek help with your HMRC debt management issues as soon as possible. Contacting us here at The Insolvency Experts before the tax due date can help you to mitigate the dire consequences that could affect your business.
What are the penalties for unpaid HMRC debt?
HMRC might impose penalties on your business for various reasons, including failure to file your tax returns on time. Late payment charges usually apply to any unpaid payments on your account. In most cases, fines start at £100 for each day delayed and can increase to a certain fixed percentage of the unpaid tax, which needs to be paid in addition to owed tax.
HMRC can also charge you a penalty – often in the region of £3,000 – if their investigators determine that your business records are not sufficient. HMRC usually calculates the penalties depending on the amount of debt believed to have been unpaid through any error. HMRC might also push for penalties based on any previous year that they believe you failed to pay sufficient taxes. Penalties are generally levied depending on:
- Deliberate tax evasion or fraud, including an attempt to conceal business assets
- Failing to register your new business
- Failure to register for VAT even after the firm turnover has reached the basic tax threshold; or
- Failure to keep proper business records like debt records and indemnities.
In the most serious cases, the penalties may also include criminal investigations, high court proceedings, escalations on the amount owed and even a custodial sentence. With this worrying range of penalties, our HMRC debt management and banking advice guarantee you affordable access to professional advice on any HMRC tax debt issue.
The services we can provide will be a critical resource if HMRC decides to subject your business to any tax investigation. We are a trusted support during any tax issue or routine investigation that may be escalated further by HMRC.
Can unpaid HMRC tax debt force bankruptcy?
HMRC, under UK corporate law, may employ bankruptcy as one of the methods of dealing with tax debt defaulters. Bankruptcy also comes with various restrictions on what your business can do. Just like other commercial creditors, HMRC may decide to file a bankruptcy lawsuit against you for various reasons, including:
- Failure by HMRC to recover the owed amount through methods like court proceedings or seizing assets
- Failure to reach an agreement with the agency at the right time to pay
- If you owe HMRC £5,000 or more
In terms of helpful HMRC debt advice, you should know that in the above three circumstances, HMRC passes your file to the “EIO-Enforcement and Insolvency” office to take further action against your business. Once a bankruptcy order is issued by a court, HMRC appoints a Trustee who assumes possession of your business assets until you settle the debt.
Once your file is received by the EIO office, they will send you a letter requesting you to pay the full amount within 14 days. In some special cases, EIO allows debtors to pay in instalments. Under such situations, EIO will ask you to pay in a lump sum and then settle the debt within an agreed period, usually less than 12 months.
Any failure to pay the tax debt in a lump sum, or satisfy the payment plan, will culminate in EIO looking to begin bankruptcy court proceedings against you. The Insolvency Experts are ready to provide you with a range of crucial insights about HMRC debt management, bankruptcy proceedings and any other HMRC debt help with regards to HMRC tax debt.
How do I find the right HMRC debt management and banking advice?
While some businesses are tempted to ignore an HMRC tax debt notification, it is clear that your debt will not go away unless you take the necessary action, with a range of severe consequences for not going about your HMRC debt management in the right way.
You need to hire the services of certified and experienced insolvency specialists to help you during the tough times of clearing your debt with HMRC. The Insolvency Experts provide you with personalised and affordable HMRC debt advice and other services that can help get your business back on the right track, or in more extreme cases look at the closure of your business in a way that best protects your financial interests.
We have provided HMRC debt help to many business owners over the years, becoming respected for providing professional, confidential and impartial HMRC debt management advice to businesses. Contact us today for customised and affordable HMRC debt management and banking advice. Here at The Insolvency Experts, we have the necessary expertise and experience to help you deal with all your HMRC related tax debt issues.