Latest research shows that in the past year HM Revenue & Customs (HMRC) has almost doubled the amount it pays to private sector debt collectors to chase those who have fallen behind on their taxes.
The Revenue spent £24 million on these services in 2016, up 92 per cent compared with £12.5 million in 2015.
Whilst the process may well be a more cost effective way for HMRC to recover outstanding taxes, some are calling it “heavy-handed and aggressive”.
Meanwhile, in other research it has been revealed that HMRC has applied to close down 12 per cent more businesses in 2016 than in 2015 due to unpaid tax.
According to the findings, the rise suggests that businesses continue to face cash flow challenges, especially around major tax deadlines such as due dates for VAT or corporation tax bills.
Our experts at Beavis Morgan are able to advise on all aspects of tax whether compliance or planning. We can also take the hassle of dealing with HMRC away from you, so you don’t need to deal directly with them. Contact Alan Ford or your usual Beavis Morgan Partner for further information and assistance.
In turn, if you have any concerns about your personal financial position or that of your business, speak to our experts at BM Advisory – the sooner advice is taken, the greater the range of options that could be available to you to resolve any issues and get you back on the right track. Contact Andy Pear or Mike Solomons of BM Advisory for more information and an initial free consultation.
If you are concerned about a tax enquiry into your affairs, worried that you may have possibly under-declared or, worse still, are you already under enquiry, our tax specialists, some of whom are former HMRC Inspector of Taxes, are well versed in dealing with all types of tax issues. We are also readily available to oversee HMRC disputes on your behalf, as well as to represent clients in appeal proceedings before the Tax Tribunal. In some situations we can also offer professional fee protection insurance, so the costs are covered in whole or in part.