|
|
04 May 2011
TAX BILLS ARE becoming the "biggest killer" of small and medium sized businesses, figures from a leading insolvency firm have shown.
Three of every four insolvencies cite HM Revenue & Customs as the single largest creditor, according to SFP. This could rise as companies who took advantage of the Time to Pay initiative have failed to provision for future tax liabilities.
Further reading
"Time To Pay is the ticking time bomb that no-one wants to mention," said Simon Plant, partner at SFP.
"But with HMRC now quite literally ‘calling in their debts', those that have failed to accrue for those debts or naively believe they will be given more time are in for a rude awakening."
There is an increasing trend of companies owing from between £125,000 to £500,000, he added.
The firm cited the examples of TWC Joinery & Shopfitting, a £6.5m turnover business that failed with the loss of 40 jobs and a tax debt of £400,000; and Antrac, a £2m turnover waste management business that failed, resulting in the loss of 30 jobs and HMRC debts of £200,000.
Figures released last week by the taxman showed the number of organisations refused TTP arrangements has increased from last year. HMRC attributed this rise to the number of businesses applying for repeat TTP arrangements.
You may also like
Search thousands of financial jobs:
Search thousands of financial jobs:
Careers
Search for jobs
Click to search our database of all the latest accountancy roles
Create a profile
Click to set up your profile and let the best recruiters find you
Jobs by email
Sign up to receive regular updates with the latest roles suitable for you
Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities
AccountancyAgeInsight is a frequently updated resource centre for finance professionals, offering a free and easy-to-use digital library of briefings, white papers and other information resources. 
Visitor comments Add your comment
So what!
They have had the cash by deducting it from their employees' pay every month so they should have paid it over when due. Likewise with VAT.
So, why should they think they have the right to use their employees and/or customers taxation cash for other things?
Posted by: Mike, 04 May 2011 | 12:26
We are finding this
KSA Group - Yes, this is becoming more common with the clients we see. HMRC are becoming more aggressive especially if the company has failed to keep up with a previously agreed Time to Pay
Posted by: Robert Moore, 04 May 2011 | 21:32