HMRC may have to take action to include corporation tax into their tax avoidance crackdown, as £1.8bn is owed in late corporation tax payments from businesses across the UK. The tax avoidance campaign, which has been running for several years now, has netted £400 million in tax receipts from 2016 alone.
The amount owed in corporation tax over the years has increased from £1.52bn in 2014 to a high of £1.8bn in 2016. Research suggests this is because SME’s are increasingly facing difficulties with cash flow strains. The number of companies leaning on government finance platforms for funding help in order to pay their overdue tax bills is rising. This is because HMRC have the right, in severe cases, to seize assets if companies run the risk of late payments.
If you are an SME you needn’t worry as Stockport accountants, IN-Accountancy suggest there are now alternative finance options such as invoice finance, peer-to-peer lending and crowdfunding which could work for your company rather than dipping into cash reserves or taking out business loans. If you have any questions regarding any corporation tax issues or another other tax matters please contact your us on 0161 456 9666 or askus@in-accountancy.co.uk
