“Please pay £XXX. We recently wrote to you about the business’s overdue VAT payment. Our records show that the amount shown is still overdue and that your business has previously defaulted in the past twelve months.
If you do not pay or contact us, we can visit your premises in order to arrange for assets to be sold by public auction as the law allows.”
One of the most common reasons for company insolvency is unpaid VAT. As VAT is largely paid on a quarterly basis, it can often be overlooked or catch directors out through a lack of forward planning. In this scenario, HMRC has grown tired of waiting to be paid and has contacted a company a number of times to chase payment but to no avail.
HMRC can be highly demanding in their attempts to recoup liabilities such as VAT payments and communication is often the key. A ‘head in the sand’ attitude and a failure to respond can often lead to greater problems and HMRC is generally less tolerant with those who simply ignore them. If your company continues to fail to meet its tax liabilities, the next step is for an HMRC Enforcement Officer to visit your business premises and begin the process of totting up assets to be seized and sold at public auction.
It doesn’t need to get to this stage. If you’re struggling to pay your VAT, it’s best that you talk to a licensed insolvency practitioner as soon as possible – contact your nearest Begbies Traynor office.
More Begbies Traynor Articles
Contact Begbies Traynor Group
You're in Safe Hands