UK businesses owe HM Revenue & Customs (HMRC) a total of £1.8 billion in late corporation tax payments, research from financial supermarket Funding Options has revealed.
The value of corporation tax payments in arrears has risen from £1.59 billion to £1.82 billion, according to Funding Options’ research. This represents an increase of 15% over the past year.
The online business finance supermarket also warned that HMRC is using ‘increasingly aggressive methods’ to recover overdue tax.
These methods include issuing late payment penalties, sending debt collectors to business premises and seizing assets. Funding Options warns that such measures may have ‘serious negative repercussions’ for businesses.
Conrad Ford, CEO of Funding Options, commented: ‘These figures demonstrate the growing pressure on cashflow for companies, which could get worse following the outcome of the EU referendum. Companies might want to explore in detail alternative finance options available to them before HMRC comes knocking on their door.
‘Businesses need to make sure they have the adequate funding to pay tax bills on time, without taking capital from other areas of the business.’
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