With HM Revenue and Customs (HMRC) currently taking months to process post and resolve issues, tax payers are missing out on large refunds which is heavily impacting their cashflow.
According to an article in this weekend’s Telegraph*, the delays are largely down to the clampdown on furlough fraud, along with the large number of HMRC staff still working from home.
While the Revenue has always aimed to refund overpaid VAT within 30 days, the significant increase in turnaround time to process post could end up pushing many smaller businesses out of business.
A spokesperson for HMRC said that, while they are aware of the issue, they “expect to see further improvements as we emerge from the pandemic” adding that they continue to readdress how the Revenue balances resources.
When it comes to cashflow, SMEs have a tight ship to run. It is therefore essential that business owners receive the specialist support and guidance they need to make effective decisions both now and for the future, as well as access to the right financial products suited to their specific business needs.
Our SME business experts at Beavis Morgan are available to structure your business with cashflow and profit forecasting to measure performance and maximise opportunities. We work to a pre-determined plan, to help you avoid any nasty surprises.
Through our partner businesses, BM Structured Finance and BM Advisory, we are also able to help with sourcing and restructuring debt finance for SME businesses, as well as assisting with resolving issues which can impact on business performance and success, and finding innovative solutions for businesses and individuals in distress.
Source: Telegraph,16 October – Tax office delays leave small businesses on the brink of collapse