Top Ten Warning Signs for HMRC (Inland Revenue and VAT) Debts

1. You are not paying the monthly PAYE & NIC deductions on time.
   
   
2. You have had penalties from the Inland Revenue.
   
   
3. You have not prepared or filed the required PAYE paperwork (P35, P11D, P60) with the Revenue.
   
   
4. You are not filing VAT returns or paying the VAT due on time.
   
   
5. Your company has had a VAT surcharge.
   
   
6. The local tax collector has passed your file to the enforcement office or the debt recovery unit.
   
   
7. You have done deals with the taxman to pay back arrears over time. (Time to pay deals).
   
   
8. You have failed time to pay deals with the taxman.
   
   
9. HMRC has taken legal action against your business. It has issued a CCJ or worse, a winding up petition.
   
   
10. You have paid unsecured creditors instead of paying the Crown debts.

It should be remembered by directors and business people that HMRC are “involuntary” creditors. In other words they do not choose to give credit, your business takes it. So the only way that they can ensure payment is to impose collection rules and regulations upon business or force liquidation if compliance cannot be obtained through enforcement action.

Failure to adhere to these rules may lead to the Crown agents taking action to recover the arrears and this could include winding up petitions, distraint, walking possession and other unpleasant actions.

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