Her Majesty’s Revenue and Customs (HMRC) handle debts related to Income Tax, National Insurance, VAT arrears and tax credit overpayments for the company, business and individual. And it becomes vital that you deal with them as quickly as possible if you owe HMRC any of the debts. These debts are considered as the priority debts, and are a consequence of not paying these would result in serious court actions and even imprisonment.
The first step is to get the arrears checked.
Getting control of these arrears is a difficult job, and we at 4R Business Recovery are expert in this, and we come with the experience of handling every scenario for our clients day-in and day-out. Arriving at the accurate tax arrears feels like an intimidating task. It is obvious to assume that HMRC, as the government organization is right with the calculations, but it is not always the correct. Hence it is always advisable to double-check to be certain of the amount you owe to HMRC. Verify the information that you had submitted them, the up to date figures for your business takings, business expenses, and ensure you have all the information correct in the correspondence they have sent. Often the miscalculation and overestimation could be the reason you receive the notice from HMRC. Talk to your account if you are not certain of the calculation and the business financial tax details confirmed.
The second step is putting a budget that will help you plan how to tackle the debt.
When you have the tax debt figured out accurately, make a budget plan that will help you in managing the HMRC debt. Calculate the amount that you receive for your business. And then calculate the expenses such as the payment you make each month and take out the expenditure amount from the income. You would be left with the disposable income amount. This will help you understand the accurate amount that you would be able to afford to pay the HMRC to settle your debt.
But the owing HMRC the money will inevitably raise worry in your and distressed about your financial matter, especially if it leads to legal proceedings against you or your company. The process the money owed for VAT, PAYE or Corporation Tax is the same and at 4R Business Recovery, we are experienced at guiding business owners through it.
Talking to HMRC
HMRC works every year. So, to avoid rolling your debt into next year, it is vital to set up a repayment plan to have the debt cleared on the current financial year itself. It is important to work on the repayment plan and talk to them, to make sure you don’t get into other financial difficulty and offer to show them your budget as the required proof. Ensure to make payment regularly, even if HMRC request a larger amount as paying something would avoid the misunderstanding that could lead them to think that you are obeying to the rules or you are trying to avoid the payment of owed tax amount.
4R Business Recovery Business will assist you, as the individual or business person, to submit a professional and affordable proposal backed up by cash flows and repayment plan. We ensure that the proposed plan will be accepted by HMRC. Contact 4R Business Recovery Business if you need help on the cash flow or finding fund for your business to continue the trading.