Tax debt, HMRC, and potentially more debt
The pandemic created a demand and supply shock that crippled many SMEs and the self-employed. More people than ever are now suffering from the added pressure of tax debts. HMRC revealed that 1.8m people failed to file their returns and pay tax on time. Can the Spring Budget on 3 March offer support and forbearance to cash-strapped taxpayers?
Trebled debt and potential of tax raids
The UK tax debt trebled within the last 12 months. A record £4.1bn debt deferred, as thousands of sole traders and business owners were faced with greater than normal tax bills. Now crumbling under the pressure of burdensome payment plans, many nervously await the clarification on the potential tax raid.
Facing unsustainable debt
While TTP offers taxpayers to spread the cost of their self-assessment tax bill into monthly instalments, it is clear that the 12 months term was simply not long enough for smaller businesses to pay their debt. Those not eligible for TTP arrangements and on reduced incomes were in a worse position. Several small business owners reported using their pension pots or deposit savings to cover the tax bill. Others resorted to a CVA to resolve their financial troubles.
If your business is struggling, and you need to understand your options, please don’t put it off. The earlier you seek advice, the more options will be available to save your business. Contact us for free impartial advice on 0800 118 2948.
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