HMRC- The Return of the Zombie Killers !!

HMRC- The Return of the Zombie Killers !!

The story is typical of the very popular Zombie film genre; the world is in a crazy crisis. In the chaos, a sub-population of Zombie businesses is created by an under pressure Government to make it look like there are fewer corporate deaths. When the experiment goes too far, and costs too much money, the Government has to take action to kill off all the Zombies it created.

Sounds too far fetched eh?

According to many in the insolvency and credit professions, official statistics strongly suggest that HMRC’s TIME TO PAY tax deferral scheme , coupled with its greater reticence in calling for Winding up Petitions against companies that owed tax, have resulted in the creation of possibly thousands of Zombie companies- businesses that have remained alive only because of HMRC’s credit lifeline to them.

Insolvency figures , as a result, have remained much lower then anticipated given the seriousness of the credit crisis we have endured.

But for how much longer?

Figures out today show that HMRC has turned up the heat on businesses failing to pay tax bills; 58% of all Winding Up Petitions presented in the Courts in the last year were brought by HMRC. The previous year, only 43% of the total was down to HMRC action. These figures can be added to the stats that came to light a few days ago showing a marked decline in the number of Time to Pay arrangements. These plummeted by 67% in the third quarter of 2010 when only 26, 000 were recorded. Compare that figure with the 82, 000 registered in the first quarter of this year!

Don’t get me wrong….. I think the HMRC did a sterling job in helping the British economy during the crisis. Many businesses were helped, and are thankful to have survived and prospered. However, there are others who I suspect would have fallen by the wayside if not for HMRC, and probably will still do so once HMRC help is no longer to hand.

 

 

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

Professional Services Why Professional Services Firms Should Ditch Folders and Embrace Metadata

2y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

2y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine

Accounting Firms Turn Accounts Payable into a value-engine

2y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021

Making Tax Digital Digital Links: A guide to MTD in 2021

2y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource