Total amount of corporation tax owed to HMRC up by 15 per cent

The amount of unpaid corporation tax thought to be owed to HM Revenue & Customs (HMRC) by UK businesses has risen by 15 per cent, according to reports.

The news comes after data revealed that the amount of corporation tax owed rose from £1.59billion to £1.82bn last year. Experts believe that the number is likely to balloon further by the end of the 2016/17 tax year.

Research suggests that an increasing number of businesses could be struggling to pay their tax bills – and could face late payment penalties or even asset seizures as a result of this.

In recent months, HMRC has begun introducing increasingly aggressive methods of collecting overdue tax – which, in some cases, may include sending debt collectors out to business premises in person.

Small and medium-sized enterprises (SMEs) with volatile cash flows could be particularly at risk, according to reports.

A separate study carried out by Bacs recently found that an increasing number of SMEs are facing problems with late payments – and that the average business is owed approximately £26.3bn from clients and customers.

Bacs found that 29 per cent of SMEs are turning towards costly overdrafts and a further 19 per cent are turning towards salary sacrifices at director level in order to make up the shortfall.

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Craig Nicholson
Craig joined Wilson Wright in February 2012 as our tax partner, heading up the twenty strong personal tax department. He will further enhance the taxation services that we provide with his in depth experience of personal, corporate and international tax matters.