Everyday we are seeing the amount of petitions by HMRC to wind up businesses rising. We know how hard a business works to stay afloat so we hate to see when things go wrong. There are many products out there to help businesses before things get to this point, which not many are utilising.
Unable to meet HMRC requirements
Each business has requirements set out by HMRC that they need to meet. However sometimes businesses can run into difficulties that can make meeting these requirements hard to do.
Failing to meet these requirements can result in HMRC taking action such as a winding up petition. This is a legal notice put forward to the court if they are owed debt more than £750 and it hasn’t been paid for at least 21 days.
With a winding up petition you have 7 days to either challenge the petition or to pay the amount owed. However, if nothing is done a winding up order will be issued and unfortunately nothing more can be done.
If you are struggling to meet these payments, there are options out there to help you spread the cost into monthly manageable payments so that it doesn’t come to the point of a winding up petition.
VAT and Corporation Tax
One of these options is funding your VAT and Corporation Tax bill. If you have been behind with paying your quarterly VAT returns or your Corporation Tax bill you could be incurring charges which make it difficult for you to get out of the red. However, there are a number of products on the market that enables businesses to fund these.
The facility is simple to apply for and is unsecured with no personal guarantees required under £150,000. Businesses only need to fund the individual VAT return or Tax Bill, they are not signed into lengthy finance agreements and ongoing contracts. Interest is charged at a fixed rate % of the total amount to be borrowed and HMRC are paid directly, leaving the business to get on and make more money.
More and more businesses are opting to use finance to pay for tax payments as it allows for easier budgeting throughout the year, improves cash flow and gives businesses a facility that they can use as and when it is required.
Don’t struggle alone
There are lots of finance products available now from a range of lenders that can help your business before it gets to the point of HMRC stepping in.
Working out the right finance product for you can be a scary process but with the help of ABL Business you are never alone. We have the knowledge and experience to help find the right product for you and your business. A broker can help get your finances in order.