Is your business struggling to keep up to date with payments? Assessing the options
Not even the most established businesses have been able to avoid the financial problems which occurred on the back of the latest economic crisis, with big names such as HMV and Blockbuster feeling the impact as well as numerous smaller businesses.
For those businesses currently struggling to meet their payments to HM Revenue & Customs (HMRC), there are a number of potential options if they feel that they may struggle to make the numbers add up when crunch time rolls around.
Examine current outgoings and expenditure
Businesses facing difficulty meeting their payments to HMRC should definitely review their current expenditure and identify if there are any areas of non-essential spending that can be trimmed or cut altogether. Business restructuring is a basic part of survival that all companies should consider strongly.
In addition, they may want to approach clients and contractors if they owe money, and see if invoices for services and goods 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, providing the following details in order to discuss their current situation:
- your tax reference number
- your name and/or the name of your business
- your address/the address of the business, including the postcode
- a contact telephone number
- details of the tax that you believe you will have difficulty paying
The most important thing that a business needs to do to avoid running into tax problems is simply to prepare effectively. Make a note of the key tax dates in your diary so that they don’t take you by surprise down the line and make sure you stay on top of all financial affairs.
By Phil Smith