Economia reports that businesses owe HMRC around £2.5BN in unpaid VAT, this is down on last year's figure of £2.7BN.
This fall in debt comes about as HMRC has doubled its use of distraint (10,577 times in the year ending March 2012, up from 5,520 over the same period in 2011).
HMRC has also more than doubled its spend on external debt collectors to almost £13M, according to data provided by HMRC to financial provider Syscap.
In distraint cases HMRC staff visit a company's premises without warning to collect unpaid taxes. The company then has five days to pay before major assets such as cars and computers can be removed.
Philip White, CEO of Syscap, said that HMRC has become “increasingly draconian” in its approach, through fines and seizing assets.
Has HMRC become more draconian in its approach, or is it that companies have been "pushing the envelope" further wrt delaying payments etc?
Tax does have to be taxing.
Professional Cover Against the Threat of Costly TAX and VAT Investigations
Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.
Ken Frost has negotiated a 10% discount on any polices that may suit your needs.
However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.
What is Solar Tax Investigation Insurance?
Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.
To find out more, please use this link Solar Tax Investigation Insurance
HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"