HMRC issued 3,000 winding up petitions last year

1 July 2015

Out of the 3,000 petitions, 1,887 firms were closed last year due to unpaid tax bills, according to the Business Finance website, Funding Options. It is a 4% rise from the year before. 

The research comes ahead of the 31st July deadline for small businesses. SMEs must pay their self-assessment tax (usually a large amount) on this day which can add pressure to cash flow, especially if there are already late payments issues with clients. 
 
While there has been a slight rise in the number of firms closing due to HMRC’s actions, the numbers are generally quite small per year. As the economy continues to improve and the number of insolvent companies decline, it’s not surprising that there are fewer companies in financial trouble. 

Visit our new Sole Trader Rescue website for advice on tax issues, HMRC demands and Individual Voluntary Arrangements (IVAs) for business owners. 

If you are company director and the business is struggling to pay VAT or PAYE, visit our tax help section or call us on 0800 9700539.