HMRC cracking down on bankrupt businesses
News Article - 07 September 2011
Category:
Business
HM Revenue & Customs (HMRC) is taking a harsher line towards
businesses that have recently entered bankruptcy proceedings,
according to a City law firm.
Wedlake Bell believes businessmen are facing tougher sanctions
from HMRC in the event of unpaid taxes.
In the last 12 months the Insolvency Service has received 443
bankruptcy restrictions orders - which extend the time period a
person must remain in the insolvency procedure - an increase of 21
per cent on the previous year.
Edward Starling, head of business recoveries at Wedlake Bell,
said: "The authorities are making an example of business owners who
have allowed their businesses to run up insurmountable tax debts by
banning them from involvement in senior management positions of a
company for a long time."
An HMRC spokesman has also reiterated the organisation's stance
of penalising those who continue to trade whilst insolvent.
He said: "HMRC doesn't initiate insolvency action lightly, but
we will not hesitate to do so when that is the right way to protect
the country's tax revenues and other creditors from those who trade
whilst insolvent and run up debts that they simply cannot pay."
With financial software, VAT
reports can be produced either monthly or quarterly and
reprinted whenever required. The VAT return is created in a
standard HMRC format. Not only does this make it easy to submit but
it also has a full audit trail.
Article keywords:
bankrupt, bankruptcy, hmrc
Start the cash flow. In our comprehensive guide we’ll show you how to stop slow payments becoming bad debts. Start your financial health-check right now by reading our free guide.
Find out more »
More industry news
Back to news home page »
Blog
RSS
Twitter 
LinkedIn