According to Business Advice HMRC has intensified its crackdown on unpaid business taxes, as new research reveals a five-year high in winding up petitions issued to owners of small firms. According to figures received by online finance platform Funding Options, in 2017 there was a 21% increase in the number of attempts made by HMRC to shut down small businesses for unpaid taxes.
The 4,710 winding up petitions issued to business owners last year represented a five-year high, after 3,906 in 2016, and 3,485 in 2015.
Further research by Funding Options recently revealed that the Treasury seized business assets from 1,953 UK firms in 2016/17, an increase of 23% on the previous tax year. Meanwhile, figures released last year by accounting group Hacker Young showed HMRC collected an additional £474m in corporation tax from small firms as a result of tax avoidance investigations in the 2016/17 tax year.
Funding Options identified Britain’s late payments crisis as having exacerbated the tax troubles of small business owners. With VAT billed upon invoice, prior to receiving payment, unpaid invoices can create immediate cash flow challenges for small business owners. Commenting on the figures, Funding Options founder Conrad Ford advised the tax office to loosen its grip on entrepreneurs.
