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 per cent 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.
When issued with a winding up petition, company owners are forced to sell their assets in order to pay off their outstanding tax liabilities. Rising numbers of winding up petitions confirm HMRC has intensified its crackdown on unpaid business taxes, with small business owners in the firing line. 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 per cent 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.
