HMRC increase winding-up petitions
During the last year HMRC increased the number of winding-up petitions served on companies by 57%.
In 2011/12, the Revenue presented 5,302 petitions compared to 3,367 in 2010/11. This steep rise coincides with HMRC's more rigid approach towards those troubled businesses who seek a 'time to pay' arrangement via the Business Payment Support Service. Yet this was a facility that was extended to help businesses during the recession.
HMRC stopped publishing statistics on 'time to pay' arrangements in 2011 but those last figures revealed not only an increase in applicants seeking further time to pay their taxes but also a rise in the number of rejected applications by the Revenue.
This tougher approach is likely to be a reaction to the pressure exerted on HMRC to raise and collect more taxes.
A spokesperson for HMRC said that the department's intention “is not to wind up companies or make individuals bankrupt, but to collect, as efficiently as we can, the debts that are due.
HMRC only initiates winding-up or bankruptcy action where it believes this is the best course of action to protect the interests of the Exchequer in respect of a particular debt. We do not take such action lightly.
Anyone who is struggling to pay an HMRC debt should call us. HMRC has an outstanding track record in supporting those who are experiencing genuine difficulty paying their debts, and this approach will continue."
So business are not sinking BECAUSE of HMRC. They are sinking because their business is failing and HMRC are not giving as much time to pay their debts. The journalism on this site is utter garbage.
Essex Boy – your last sentance is a bit harsh but I agree, failing businesses need to go early so their debts don’t drag others down.
Essex Boy – The headline is meant to grab your attention and make you read the article, which clearly you did.
The journalism therefore worked.
The article then goes into detail about what is actually happening to failing businesses.
Headlines don’t always tell the full story. A headline of “Great Tits” may go on to describe the Parus major, a well known species of garden bird.
It might not be what you expected from the headline, but it doesn’t make the article any less informative.