Are you a limited company director? Then it’s likely that you’re aware of HMRC and that they are one of the biggest creditors in the UK. In this blog, we’re answering the question, where is HMRC based?
What is HMRC?
HMRC is an abbreviation for HM Revenue and Customs. They collect tax and PAYE from individuals and companies in the UK. The money collected by HMRC is used to fund many public services and help families and individuals who need it most.
Individuals and businesses must pay taxes based on thresholds set by the government, which vary depending on income type and tax category. If you are employed, the tax deduction should be automatic, but if you are self-employed, which is likely if you are a company director, you will need to organise the payment yourself by filing a tax return.
Where is HM Revenue and Customs based?
HMRC have many offices throughout the UK, as they provide so many services to such a wide range of people.
The HMRC headquarters are located at 100 Parliament Street, London, SW1A 2BQ.
In addition to this HMRC office, they also have over 10 offices in various locations covering a range of services. They have regional centres, specialist sites, transitional sites and more.
How can I contact HMRC?
There are many ways that you can contact HMRC if you need to. You’ll find all of the contact numbers on their website. It’s important that you ring the right number depending on your reason for calling them.
Be aware that HMRC’s phone lines can be very busy, so you may end up waiting for a while. It’s useful to have information such as your unique taxpayer reference to hand when you call them.
In addition to ringing HMRC, you can also email them or write to them via one of their postal addresses.
Why might I need to contact HMRC?
As a company director, there are many reasons why you might need to contact HMRC. Some of these can include the following.
- Corporation tax payments
- PAYE (employee tax and National Insurance contributions)
- VAT
- Changes to company details
- For guidance on corporation tax compliance
- Self-assessment complaints
Why might HMRC contact me?
There are some instances where HMRC may contact you as a company director. When dealing with HMRC, it’s vital that you are honest and act quickly and professionally. If you fail to act responsibly towards them, they may instigate bailiff action or issue your company with a winding-up petition.
What can HMRC do about missed payments?
HMRC is one of the biggest creditors in the UK, which means you’re unlikely to be able to escape them. You might be surprised to hear that HMRC often wants the best for companies, so they are usually open to helping them out with payment arrangements.
If your business is struggling financially and might be insolvent, then it’s vital that you seek professional advice. If you fail to seek advice and end up in compulsory liquidation, then it will not reflect positively on you as the director.
Penalty fines
The first thing HMRC is likely to do if you fail to pay them on time is send out penalties. The cost of these penalties will depend on how much tax and PAYE you owe. If you communicate with them early, you may be able to avoid penalties.
Added interest
HMRC charges interest on late tax payments, and this rate is subject to change based on the Bank of England base rate. Always check the latest rate on HMRC’s website
Bailiff action
We briefly mentioned bailiff action before, and if things escalate badly with HMRC, you may end up with them showing up at your business premises. This can be distressing for directors and employees in the company.
Bailiffs may seize goods from your business, including stock and machinery. This process begins with assets being placed under a Controlled Goods Agreement, which means they cannot be sold or removed from the property.
Statutory demands and winding up petitions
If you continue not to pay your debts to HMRC, they may issue a statutory demand. Directors have 21 days to pay this or 18 days to dispute it.
If a statutory demand remains unpaid after 21 days, HMRC may escalate recovery action, which can include issuing a winding-up petition. This process is stressful and ends with the company being closed by compulsory liquidation and removed from the Companies House register.
Having to use a compulsory liquidation can result in heightened director scrutiny, as you have not adhered to your director’s duties. This could impact your ability to start another company in the future. Directors also lack control in this situation and won’t even be able to choose their own insolvency practitioner. This person will be chosen for you from a list of licensed insolvency practitioners.
What should I do if I can’t pay my tax bill?
If your business is experiencing some financial difficulties, then you may not be able to pay your tax bill. The best thing to do is to stay calm and seek professional advice. You will need to ring HMRC and be honest about your situation. In addition to a company’s tax liabilities, directors need to be wary of Capital Gains tax, inheritance tax and more.
If you are honest and communicate openly, HMRC is likely to be more lenient and offer helpful solutions, such as a time-to-pay arrangement. Not every director is eligible for this, so it’s best to talk to them before you start relying on it as an option.
We hope this blog has been helpful on where the HMRC offices are located. Please feel free to contact us for confidential, honest advice on your personal situation. We can support you with all aspects of HMRC arrears.
Justin Barker
I’m Justin Barker, the Managing Director at 1st Business Rescue. I have over 25 years of experience providing insolvency advice to business owners.
I understand how challenging it can be when dealing with financial difficulties within your business. It’s easy to ignore the problem and hope that it disappears, but this is often the worst thing you can do. Our dedicated team is here to provide honest, valuable advice to help UK directors deal with their personal situations in the most appropriate way.
No case or circumstance is the same, but I can guarantee that I am there to give you the best advice.
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