Tax arrears and Tax problems build up over time...

Tax arrears and Tax problems can build up over time for a variety of reasons. Some of the circumstances which can lead to tax arrears include the following:

• Errors in calculation.
• Incorrect exercise of VAT schemes.
• Delays in obtaining VAT registration and/ or tax clearance for new businesses.
• Inadequate accounting systems and procedures.
• Poor advice from external financial advisers.

If you are finding yourself to be in any of the above circumstances, all you need to do is make a payment of the correct amount to HMRC in order to rectify your tax liability and subsequently bring all of your tax arrears up to date.

However, if you are unable to make the payment immediately due to financial strains, it is highly likely that your business has liquidity problems and there are potentially more fundamental reasons which have given rise to your tax arrears. These factors may include the following:

• Problematic industry or sector.
• Over-trading.
• Inefficient operations.
• Undercapitalisation and/or underinvestment.
• Inappropriate funding structure.
• Deficiency within the management team.
• Key decisions made on untimely, inaccurate and/or unreliable management information.
• Lack of planning on major strategies such as acquisitions, diversification, expansion and relocations.
• Significant external one-off event e.g. bad debt, fire or loss of key staff.
• Loss of confidence from funder(s) and withdrawal of facilities.
• Loss of credit insurance.
• Internal fraud or theft.

If one or more of the above events have occurred and as a result you have fallen behind on payments to your suppliers and into tax arrears with HMRC, it is essential to overcome these problems so that you can come up to date with your tax liability. This is where Express Tax Solutions can help. Our expert tax arrears advice helps businesses tackle their tax arrears and tax problems head on and effectively ensure that they put in place long term measures to prevent tax arrears from occurring in the future.

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Read More on Tax Arrears & Tax Payment Plans

Links to other pages within expresstaxsolutions.com which are related to Tax Payment Plans:

• Tax Payment Plans
• Tax Payment Plan FAQ's
• Case Studies & Fees