HMRC applied to shut down 3,000 businesses to meet unpaid tax bills last year and succeeded in over half of cases, according to research by Funding Options, warning that as the July 31 deadline for self assessment tax payments is near small businesses need to ensure they make payments on time
For the year ended 31 December 2014, HMRC was successful in gaining court orders to wind up 1,887 businesses over their tax debts, a 4% rise from 1,816 in 2013.
After the business is wound-up, HMRC liquidates its assets in order to cover the unpaid tax bills.
Funding Options says that the figures highlight the potential consequences if businesses’ immediate cash flow position makes them unable to secure alternative finance to cover their tax bills.
Conrad Ford, CEO of Funding Options, said: ‘For small businesses looking nervously at the upcoming July 31 tax payment deadline, the need to get funding in place to cover the payments is now pressing.
‘There is a wide range of choices out there for small businesses seeking funding – invoice finance, asset finance, crowdfunding and peer-to-peer lending can all provide the liquidity businesses need. Unfortunately, small businesses leaders often don’t know which sort of finance is the best fit for a particular need, or who is out there to provide it.’
