Even though the recession started in 2008, it has been a long and slow recovery. And although there have been signs of a strengthening economy, the fallout from the difficult years can still be felt today.
As a result in declining business, many SME’s and independents found themselves struggling to pay their business tax. It’s not a case of the individuals intentionally avoiding the payment of taxes, instead many simply found themselves in the position where they were just scraping by and did not have the funds to settle their debt. And it’s one of those situations where late fees and penalties quickly spiral out of control.
But there is good news for those struggling with tax debt. HMRC is offering a way to settle outstanding taxes.
There have been numerous decisions in the courts recently which determined that certain tax schemes don’t function as intended. So HMRC is in the process of reaching out to businesses in tax trouble.
HMRC are also posting letters out reassuring participants of some of the schemes to enter into discussions with them in the hopes of coming up with a resolution that works for the businesses or they could face litigation. The letters specifies that there is a deadline to register for a consultation with the aim of coming up with a settlement for delinquent business tax.
If you are planning on going into negotiation with HMRC, bear in mind that you should have a clear understand the complexities of tax and legal issues. Being unprepared may potentially cost you. Consideration should also be given to the fact that despite coming up with a resolution for historical taxes, you do not leave yourself in the position where you leave your business exposed to future tax debt.
If you would like to understand more about this and how it could potentially impact you, Michael Bell & Co, Chartered Accountants can help. If you would like to know more about this or any other financial matter, please contact us at 01484 690730.