What are Employer Financed Retirement Benefits Schemes (EFRBS)?
Understanding EFRBS and the 2019 loan charge Employer Financed Retirement Benefits Schemes (EFRBS) are pension schemes that provide retirement benefits to their members but operate as unregistered schemes. Unlike regulated schemes, such as those that qualify for tax advantages, EFRBS does not allow the limited company to claim corporation tax relief on contributions, and any […]
Understanding the impact of a Personal Liability Notice (PLN)
What is a Personal Liability Notice (PLN)? A Personal Liability Notice, or PLN, is a notification sent by HMRC to an individual, transferring a company’s responsibility for unpaid National Insurance Contributions to the recipient. It’s a significant action, more frequently applied since its introduction in 2009, primarily addressing serial ‘phoenixism.’ Phoenixism involves selling a struggling […]
Understanding HMRC security bonds for VAT, PAYE, and NI
When will HMRC request a tax deposit or security bond? A security bond is a tax deposit requested by HMRC to cover potential future tax liabilities if your business is at risk of financial difficulties. If you are required to provide a security deposit, you will receive a Notice of Requirement specifying the amount and […]
Tax, HMRC and VAT Help, Advice, and Support for Company Directors
What help is there for companies with HMRC tax debt? Companies struggling to meet their tax obligations with HMRC can find assistance. A key form of support is the Time to Pay (TTP) scheme, allowing businesses with tax debts to negotiate extended deadlines for repayment. This arrangement provides extra time to settle outstanding taxes and […]
PAYE Arrears – What happens when my company has HMRC debts?
What to do when your company falls behind in paying PAYE Under the Pay As You Earn (PAYE) system, employers must establish an official payroll scheme to record details of employee payments, covering salary, wages, bonuses, and statutory sick pay. As an employer, it is your duty to gather the accurate income tax and National […]
Late VAT Payments: Surcharges, Penalties and Fines: Advice for limited company directors
What are the penalties for paying VAT late? HMRC will assign penalty points for the delayed or non-submission of your limited company VAT Return. This system, introduced in 2023, replaced the VAT Default Surcharge scheme. Under the updated system, penalty points accumulate until reaching the threshold, triggering a £200 fine. Further fines of £200 each […]
How does HMRC debt collection work?
Dealing with HMRC debt collection agencies If your company is grappling with HMRC arrears, such as unpaid VAT, corporation tax, and/or PAYE, you may be facing increasing pressure to settle the outstanding amounts. HMRC typically initiates the collection process by sending reminder letters, urging prompt repayment. In the absence of payment, your company might receive […]
HMRC Bailiffs: What Are Their Rights?
What happens if you are visited by a HMRC bailiff and what can they take from your property? While HMRC is the most common creditor for businesses in the UK, falling behind on tax payments can pose a serious problem for your company. Persistent late or missed payments will not go unnoticed, and HMRC is […]
All you need to know about corporation tax relief
A director’s guide to corporation tax relief As a limited company director, it’s mandatory to submit a corporation tax return within 12 months of the accounting year-end. This return incorporates various reliefs and allowances. Since you bear the ultimate responsibility for its accuracy, it’s wise to familiarise yourself with the corporation tax relief rules. However, […]
Can business HMRC tax debts be written off?
Can a limited company write off tax arrears owed to HMRC? If your company is burdened with HMRC debts that you find challenging to repay, you may be curious about the circumstances, if any, under which you can have them forgiven. Encountering difficulties in settling bills for VAT, National Insurance contributions, or PAYE is not […]