What happens if I can’t pay my tax bill?


What are the likely consequences and what repayment options do you have? Even if your business is facing challenges, timely payments of PAYE, VAT, and Corporation Tax are still expected. While HMRC may offer some flexibility, addressing tax debts promptly is crucial, as the repercussions of non-payment can be severe. HMRC possesses robust enforcement powers […]

Corporation Tax – What Happens If Your Limited Company Cannot Pay?


What happens if I cannot pay Corporation Tax? If you’re unable to settle your Corporation Tax, HMRC has the authority to initiate debt recovery proceedings for your company. Yet, by engaging with HMRC and informing them of your challenges, you might negotiate a Time to Pay (TTP) agreement. This could grant you extra time to […]

HMRC issues: Fraud Investigation Service


What is the role of the HMRC Fraud Investigations Service (FIS) The HMRC Fraud Investigations Service (FIS) is a skilled team focused on uncovering tax evasion and fraud. Formed in 2015, it brought together two HMRC units – the Criminal Investigations Unit and the Special Investigations Unit – to create the FIS. What does the […]

What is a HMRC Time to Pay Arrangement for VAT, Corporation Tax and PAYE?


What is a HMRC Time to Pay (TTP) arrangement? A Time to Pay (TTP) arrangement with HMRC is a payment plan that provides a company with additional time to settle their tax arrears. Generally, Time To Pay plans extend over approximately six months, although in specific cases, an extension of up to 12 months may […]

What are the powers of an HMRC field force officer?


How will an HMRC field force officer enforce payment of HMRC arrears? Failing to settle HMRC debts may prompt a visit from an HMRC field force officer, who will formally request payment. They will collect overdue tax either as a lump sum or in instalments. Non-compliance could lead to the right to seize company assets […]

What is a Gazette First Notice for Compulsory Strike Off?


What is a Gazette’s first notice for compulsory strike-off? The initial Gazette notice for the compulsory strike-off of a limited company signifies a creditor’s intention to remove the company from the register held at Companies House. After the company is struck off, it loses its status as a legal entity, requiring a permanent cessation of […]

What to expect from an HMRC visit


What’s the protocol when HMRC officers visit business premises?  There are two types of visits HMRC officers can make to your business premises: arranged visits and unannounced visits. In the course of an HMRC visit, you should anticipate officers requesting company records. Unless the visit is unannounced, they will inform you of the specific accounts […]

What happens to your limited company if you ignore HMRC?


What action can HMRC take if I fail to respond? Ignoring HMRC or neglecting to respond to their inquiries regarding your financial matters may result in penalties. HMRC could issue an enforcement notice, notifying you of a scheduled visit from HMRC officers or independent bailiffs. Alternatively, HMRC might issue a statutory demand, and ignoring it […]

What does HMRC Secondary Preferential Status mean for creditors?


As of 1st December 2020, HMRC became a secondary preferential creditor in insolvency processes. Before, they were unsecured creditors and positioned at the bottom of the hierarchy for repayment. Creditors get repaid in a specific order set by insolvency law. This alteration has significant effects on certain creditor groups. Unsecured creditors usually get a small […]

Corporation tax: What happens if you file or pay late?


What are corporation tax late filing penalties? Late filing penalties for corporation tax are imposed when companies fail to submit their Company Tax Return by the official deadline. A fine of £100 is levied by HMRC, even if the filing is just one day overdue. These penalties escalate over time and can harm your company’s […]