Businesses and employers across Britain risk a penalty if they fail to file their Employer Annual Returns (P35 and P14’s) online before the 19th May. Following the changes that came into effect earlier this year HM Revenue and Customs are more than likely to make a charge for any documents filled after the 19th May. [...]
Inland Revenue (HMRC) was responsible for 58 per cent of all the petitions submitted over the last year to wind-up companies compared to just 43 per cent in the previous year. Petitioning to wind-up a company is the “nuclear” option used by creditors who hope to get paid back some of the money they are owed by having a businesses’ assets liquidated and sold off.
The previous Government tried to ban this practice in 2007, however the revenue estimate that nearly £200m in tax is being avoided in this way. HMRC continue to target small family businesses.
Some people feel that the dilemma for HMRC, in the light of falling tax receipts, is deciding if a business (a) is using the scheme as a convenient cashflow source, or (b) is waiting for definite cash inflows to arrive and hence needs time to pay its tax, or (c) HMRC is unwittingly acting as life support for the particular business.
