HMRC – what are your options when you cannot afford to keep up to date with payments?
With fears that the UK could take at least a decade to regain its recently downgraded AAA credit rating, businesses in Britain could continue to face barriers to growth amidst a challenging economic environment.
With high-profile retailers such as Comet, HMV and Blockbuster recently going into administration it appears that not even established businesses have been able to weather the storm of the ongoing financial crisis.
For those businesses currently struggling to meet their payments to HM Revenue & Customs (HMRC) in the wake of a fall in domestic and export orders in January, there are a number of potential options if they anticipate that they will be unable to meet tax payments in full and on time.
Examine current outgoings and expenditure
Businesses facing difficulty meeting their payments to HMRC may want to review their current expenditure, and identify if there are any areas of non-essential spending that can be trimmed or cut altogether.
In addition, they may want to approach clients and contractors if they owe money, and see if invoices for services and good can be paid in a more rapid fashion.
Approaching their bank and building society to see if they are able to provide additional financing to tide them over in the short-term may also be an option.
Contact HMRC directly
Individuals and businesses who have not yet received a payment demand from HMRC can contact HMRC's Business Payment Support Service Helpline on 0845 302 1435, providing the following details in order to discuss their current situation:
If a business feels that they need more support and guidance they can contact a corporate recovery specialist who could provide assistance in dealing with HMRC payment demands.