Tax
Advice for directors with PAYE and VAT arrears
HMRC is the most common creditor for UK businesses and it’s easy to see why. When faced with a cash flow crunch, rather than not paying key suppliers that your business relies on, the easier option might be to delay a VAT or PAYE payment to HMRC. However, HMRC has enforcement powers that go beyond that of other creditors, which makes building up PAYE and VAT arrears a risky situation to be in.
What happens if I cannot pay the VAT?
Struggling to pay the VAT is a common problem for companies, however, this does not mean the problem should not be taken seriously.
Accelerated Payment Notices
If you are one of the many companies that have received an accelerated payment notices then you have very little time in which to act.
What is a HMRC security bond for VAT, PAYE or NI?
Where HMRC feels there is a risk of non-payment of tax from a company, they may request a security bond is paid before trading can start or continue. This is done by issuing a Notice of Requirement in respect of VAT, PAYE, or National Insurance.
What is a Corporation Tax Liability?
All registered companies in the UK must pay corporation tax on their profits. The rate of corporation tax varies between 19% and 25% depending on the level of profits of the company.
What is HMRC interest on late payments in 2023?
When running a business, it is normal for market fluctuations and external factors to result in periods of financial pressure, which sometimes means there is not sufficient money in the bank to cover all running costs.
A Guide to HMRC VAT Late Payment Penalties and Surcharges
HMRC applies a penalty system when your company defaults on its VAT liabilities. This includes the late filing of your VAT return as well as late payment of the VAT due.
If I cannot pay a VAT bill, what options are available to my company?
Companies that are VAT registered usually have to pay their VAT bill once every few months and they should calculate along the way how much VAT they are likely to be due to pay to HM Revenue and Customs (HMRC).
My company owes HMRC corporation tax and VAT but I cannot afford the payment request
I'm really worried and would like some advice please. I am the sole director of a limited company providing IT consultancy and have recently accepted a permanent job with another company starting in two weeks. My company will then become dormant. I have been naïve and silly and taken too many dividends and consequently can't pay back the corporation tax and VAT owed which totals £25,000.
