Company tax problems in 2013 – what do I need to know?
The introduction of Real Time Information Systems (RTI) from April 2013 is set to tighten the tax laws even further for UK companies. When RTI is implemented, companies will not be able to understate their PAYE liability in any way, regardless of how financially stable they may or may not be.
In the current financial climate, a number of UK companies are struggling to carry out basic functions. Paying an appropriate amount of tax is one of the most obvious areas where companies may fall into trouble, and failing to meet your responsibilities in this area could lead to significant problems.
But what options are available if you are struggling to pay your PAYE and VAT arrears?
Ask for extra time
A government initiative known as the Business Payment Support Service (BPPS) was set up in 2008 to provide SMEs with the opportunity to establish a Time to Pay arrangement with HMRC. This system can be a particularly useful one for companies that are aware of their outstanding liabilities and are seeking a solution to enable payment to be made where they may have other cashflow issues.
Company Voluntary Arrangement
A Company Voluntary Arrangement (CVA) will allow a viable business experiencing cashflow difficulties to freeze all unsecured debts and establish a structured repayment plan over a period of time. This may
A CVA will establish new terms by which all existing debts , including crown debts, will be paid, directly replacing any previously existing contracts. The arrangement may include an element of debt forgiveness.
The inability to pay outstanding tax liabilities in full and on time is a problem facing many companies in the current financial climate. A corporate insolvency advice service could assist you with guidance on Time to Pay schemes and other restructuring options.
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