Figures obtained by independent IT finance provider Syscap indicate that HM Revenue and Customs (HMRC) are increasingly using their powers of distraint to seize the assets of businesses with unpaid VAT bills.
Last year, HMRC used these powers 2,401 times, compared with 921 times in the previous year.
Philip White, Chief Executive Officer of Syscap, says that small businesses must be aware that HMRC are taking a much more proactive stance with regard to recovering unpaid VAT, and suggests that businesses make contingency plans if they are struggling to make payments.
Mr White also cautions that HMRC are less prepared than a year ago to allow businesses to defer tax payments under the ‘Time to Pay’ scheme, so businesses are advised to get their payments in order or run the risk of having their assets seized.
If your business faces financial difficulties, take advice sooner rather than later.