UK businesses owe £1.8 billion in late corporation tax says new study

March 20th, 2017
20 March

The total value of corporation tax payments in arrears has jumped 15 per cent in the past year, to £1.82 billion up from £1.59 billion, as businesses increasingly struggle to pay their tax bills.

Research by online business supermarket, Funding Options, have warned that small businesses are at particular risk of having their assets seized because of volatile cash flows.

While smaller companies have previously relied on bank overdrafts to bridge shortfalls, this vital source of finance is being lost with banks cutting overdrafts by £5 billion – 37 per cent – over the past five years.

“The options are becoming more limited leaving small businesses at risk of having their assets seized,” said Martin Williamson of ipd.

“The Funding Options report say smaller businesses are increasingly looking to alternative sources of finance, such as crowdfunding and peer to peer lending.

“Businesses must ensure they have the money available to pay their tax bills without resorting to alternative funding.

“The best approach is to seek advice from an independent insolvency adviser at the earliest possible stage so that every option to review your finances can be considered.