For many years HMRC debts were treated as preferential debts when companies went into liquidation. In simple terms HMRC creditor was always at the head of the queue when the liquidator realised all the assets and started to make distributions to creditors. HMRC tended to be tolerant as they knew that they would always be ahead of all unsecured creditors should a company be liquidated.
This changed in 2002 when The Enterprise Act of 2002 removed their right as a preferential creditor in the pecking order and they ranked alongside unsecured creditors.
As a result of this change HMRC have become far less tolerant and in 2014 HMRC successfully applied to shut down 1,887 businesses due to those businesses being unable to meet their obligations to pay mainly VAT and PAYE deductions from staff. In total HMRC applied to shut down 3000 businesses.
This changed in 2002 when The Enterprise Act of 2002 removed their right as a preferential creditor in the pecking order and they ranked alongside unsecured creditors.
As a result of this change HMRC have become far less tolerant and in 2014 HMRC successfully applied to shut down 1,887 businesses due to those businesses being unable to meet their obligations to pay mainly VAT and PAYE deductions from staff. In total HMRC applied to shut down 3000 businesses.
With the implementation of RTI ( real time information) HMRC are now aware of the exact position of all businesses operating a PAYE system, and are able to keep on top of any PAYE arrears.
Pre- RTI HMRC were only aware of a liability when businesses completed their Employers Annual Return so it was possible to accumulate a considerable PAYE debt without HMRC being aware of the outstanding liability.
In addition HMRC have now introduced personal liability notices and these are being issued to Directors whom HMRC feel have been negligent in failing to pay National Insurance Contributions (NIC). This can result in HMRC seeking recovery from Directors who they believe acted fraudulently or negligently in failing to pay NIC contributions.
Pre- RTI HMRC were only aware of a liability when businesses completed their Employers Annual Return so it was possible to accumulate a considerable PAYE debt without HMRC being aware of the outstanding liability.
In addition HMRC have now introduced personal liability notices and these are being issued to Directors whom HMRC feel have been negligent in failing to pay National Insurance Contributions (NIC). This can result in HMRC seeking recovery from Directors who they believe acted fraudulently or negligently in failing to pay NIC contributions.
The implications are serious for HMRC defaulters
Where a Director has caused HMRC to suffer non payment of VAT they can seek a bond should that Director which to apply for a new VAT number in a new business.
The implications are serious for HMRC defaulters and it is therefore vital that businesses have sufficient working capital in place to ensure these liabilities are met as and when they fall due.
For most businesses the biggest asset is money due to them from customers and it is now easier than ever to release monies from debtors to either finance the business in the long term or meet short term liabilities such as a PAYE or VAT.
At Findmeafactor we have sources that offer facilities to a range of businesses including those with a cash flow crisis or with poor credit history.
So if you are facing a difficult situation with HMRC call contact us now before it is too late.
The implications are serious for HMRC defaulters and it is therefore vital that businesses have sufficient working capital in place to ensure these liabilities are met as and when they fall due.
For most businesses the biggest asset is money due to them from customers and it is now easier than ever to release monies from debtors to either finance the business in the long term or meet short term liabilities such as a PAYE or VAT.
At Findmeafactor we have sources that offer facilities to a range of businesses including those with a cash flow crisis or with poor credit history.
So if you are facing a difficult situation with HMRC call contact us now before it is too late.
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