HMRC Increases Use of Asset Seizure

Over a 12 month period, HMRC has almost doubled it’s use of asset seizure to settle unpaid VAT bills.

A recent article published by the Financial Times, using data provided by Syscap, shows that in the year end to March 2011 HMRC had used it powers of distraint on 2,401 occasions. These powers of distraint allow the taxman to seize possessions and auction them off in order to pay outstanding tax bills. In the year end to March 2012, this figure rose alarmingly to to 4,746. With 95% of distraint cases involving SMEs, it would appear that small businesses are once again at risk of being targeted.

With greater efficiencies in tax collection announced in the last budget, HMRC are now also using more collection agencies often meaning less flexibility and consistency when negotiating with HMRC. The FSB have also recently pointed to there being less access to Time To Pay arrangements, as well as a more aggressive stance being taken by HMRC.

What all this means to SMEs is that paying your VAT (and any other tax) on time is becoming more and more important. Access to cash in order to do this is vital for any business, and Selective Invoice Discounting can give you the flexibility to unlock cash tied up in your sales ledger, as and when you need it. Rather than waiting for your cash to turn, a simple debt purchase agreement with Creative Capital can give you the funds needed to resolve these, and other, issues.

If you need to discuss this, or any other issues, then get in touch today to find out how we can help.

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