FOI request reveals that HMRC is ‘principal creditor’ in SME insolvencies

Business News News

Warning: count(): Parameter must be an array or an object that implements Countable in /home/customer/www/gibsonhewitt.co.uk/public_html/wp-content/plugins/q-and-a/inc/functions.php on line 252

HM Revenue & Customs (HMRC) was the largest single creditor in the liquidation of two thirds (65 per cent) of all businesses in the past financial year according to a recent Freedom of Information (FoI) request.

This represents an 11 per cent rise on the last figures, which were obtained five years ago – and mean that they were the largest creditor in as many as 2,995 compulsory liquidations

A separate report published at the beginning of 2018 found that HMRC is owed £4.4 billion in overdue corporation tax and VAT by UK businesses.

This is a jump of around 47 per cent on the previous year, but a spokesman from HMRC insisted that the fluctuation in insolvencies was due to “a range of factors” as opposed to one single, distinguishable cause.

Up-to-date figures from the Insolvency Service appear to suggest that compulsory liquidations have fallen by more than 40 per cent since 2012.

However, the FoI revelations reveal that many firms are struggling with hefty tax bills, which often have a large part to play in compulsory liquidations.

SHARE THIS ARTICLE: