What happens if vat is not paid

Many tenants are unaware that Stamp Duty Land tax is payable on commercial leases — and may be Direct Access Tax Barrister. Putting Matters Right To put matters right, you should do two things. Yes please. Related Articles. Stamp Duty in London 26th July Get In Touch For professional and insurance reasons Patrick is unable to offer any advice until he has been formally instructed. Pre Pack administration is a powerful way to protect the business assets and sell them to a new company formed by you or a trade buyer for example.

This will protect the company from aggressive legal action of HMRC like winding up. If the company is simply never going to be viable, then you should carefully consider creditors voluntary liquidation, this effectively closes the company down and may help protect the directors. Read more here on liquidation. If your business is constantly building up arrears of VAT this is a failure to comply with the law and also makes HMRC tax collectors think that the company is insolvent.

So, you need to act properly and responsibly and deal with this serious threat to your company. Remember that if the company is insolvent, and if it goes into liquidation in future you could be personally liable for the debts, if you continue to trade, whilst doing nothing about the problems that it faces. If you KNOW the company is insolvent and you make the creditors' position worse, then in a future liquidation you can face personal liability for the debts you took on.

Our advice is always to act quickly and carefully, get expert advice from us, keep notes of any discussions and decisions and always write down the names of people you speak to at HMRC.

Finally, don't wait too long to get professional turnaround help. Call the HMRC debt experts on or or email our advisors on help ksagroup. Worried about poor cashflow? Feel you have got into a bit of a mess? For reassuring advice on a range of issues download our free Ultimate Guide For Worried Directors today.

Or just call us on Please note that the guide includes updates due to Covid For instance there have been some changes to insolvency legislation that limits creditors actions. A new 20 day moratorium for distressed businesses has also been introduced. However, the maximum period is three years, although interest will continue to run on assessments remaining unpaid after thirty days from the date of issue.

The rate of interest is set by the Treasury and is broadly in line with commercial rates of interest. Appeals against assessments, penalties and the amount of interest charged may be made. HM RC offices and the tribunal have powers of mitigation in appropriate circumstances.

Where the appeal is against the imposition of interest, penalties, or surcharge, the tax but not the penalty, interest or surcharge must usually be paid before an appeal can be heard, unless the appellant can demonstrate that paying it would cause financial hardship.

The tribunal is given the authority to increase assessments that are established as being for amounts less than they should have been.

A formal procedure is now established for appeals to be settled by agreement. This agreement must be in writing, and there is a thirty-day cooling off period during which the taxpayer may cancel the agreement.

HM RC has extensive powers to obtain information. It can enter premises and gain access to computer systems and remove documents. None of the above penalties or interest is allowable as a deduction when computing income for corporation or income tax purposes. If in doubt, contact us.

It is important that you seek professional advice as early as possible. We can help you! Plummer Parsons Logo. Skip to Navigation. UK We use some essential cookies to make this website work. Accept additional cookies Reject additional cookies View cookies. Hide this message. Home Business and self-employed Business tax. VAT Returns. How much you pay Your surcharge is a percentage of the VAT outstanding on the due date for the accounting period that is in default.

You do not pay a surcharge for your first default.