HMRC HELPING BUSINESSES WITH COVID ARREARS
UK Business secretary has announced HMRC will be taking a ‘cautious approach when it comes to collecting overdue debts built up over Covid-19.
This announcement will no doubt come as a huge relief to thousands of business owners who still owe HMRC unpaid VAT, PAYE, and Corporation tax.
Many clients I have been speaking to recently have been worried about potential winding-up petitions landing on their doorsteps when the moratorium ends at the end of September.
This move looks to try and contain the inevitable company insolvencies that are expected as government support is slowly reduced.
Kwasi Kwarteng, UK business secretary, wrote to business groups this week promising that HMRC would take “a cautious approach to enforcement of debt owed to the government that will have accrued” during the pandemic.
It’s critical that if you have arrears with HMRC you should engage with them and keep them updated on your situation. The revenue is understanding right now and has never been more flexible and open to agreeing to extended time to pay arrangements. This is where a business can agree to pay their arrears over an extended period of time. In certain cases, we have seen arrangements over 2 years giving the business much-needed breathing space.
It’s important that once you have entered into a time to pay you must stick to it and keep up to date with current HMRC bills.
If you would like some help when dealing with HMRC don’t hesitate to get in touch.
All the best,