search

Number of SME asset seizures 'doubles' over unpaid VAT

Number of SME asset seizures 'doubles' over unpaid VAT
24/04/2013

24 Apr 2013

The number of SMEs having their assets seized by HM Revenue & Customs as a result of unpaid VAT has almost doubled in the space of a year, recent research has revealed.

In the year to 31 March 2012 a total of 4,746 seizures were made, compared with 2,401 in the previous year.

Philip White, Chief Executive of Syscap, which conducted the research, warned that HMRC is becoming increasingly aggressive in claiming VAT payments, and that the future of some small businesses could be under threat as a result of large VAT bills.

‘Prior to the credit crunch, banks were offering more credit to SMEs, so businesses could fund their VAT bills through loans or overdrafts.

Since then, however, capital adequacy rules have forced banks to rein in their lending, which has made it more difficult for SMEs to rely on bank funding alone’, he said.

‘As VAT bills are payable on invoiced work rather than receipts, many businesses will find themselves paying tax on work they haven’t yet received payment for.

These businesses are likely to have invested money up front in fulfilling contracts, putting further strain on available cash.’

We can help with all of your VAT planning needs. Please contact us for further assistance. Our Services Accounting Services

Auditing

Business Support

Company Secretarial

Company Formation

Payroll

Taxation Services

Specialist Services

Research & Development

Litigation support

Investment business

Enquiry Form



More News

Businesses 'turning to alternative sources of finance', research suggests

Businesses 'turning to alternative sources of finance', research suggests

Research published by the British Business Bank (BBB) has suggested that UK small businesses are increasingly turning to alternative sources of financ...

Read More
The General Data Protection Regulation: make sure you're prepared

The General Data Protection Regulation: make sure you're prepared

Recently published research has suggested that two thirds of businesses are ‘unprepared’ for the upcoming introduction of the General Data Protection ...

Read More
Many businesses 'underestimate the risk' involved with cybercrime, report finds

Many businesses 'underestimate the risk' involved with cybercrime, report finds

A large proportion of small and medium-sized enterprises (SMEs) and the general public ‘underestimate the threat of cybercrime’, a new report from the...

Read More

Read More

Read More

List your business

Would you like to register your company on one of the UK's largest and most effective Trade websites?

Are you looking for a reliable and consistent source of enquiries from your industry sector? Would you like to see why Find the Needle clients come back year after year to use our service? If so then feel free to register using the link 'here'.

Register
Office Address: