A Word of Caution for Small Business’s as Distraint Orders by HMRC QUADRUPLE in Two Years

March 20, 2012 - PRLog -- The number of companies whose assets have been seized for late payment of tax have risen fourfold in two years. In the twelve months to April 2009 HMRC destrained 1,675 companies, however, in the year to April 2011 it was up to 7,004 companies.

HMRC lost their preferred creditor status in 2003 and are now ranked at the same level as trade creditors. In effect they are unsecured creditors. However, as any debt to HMRC is regarded as ‘not in dispute’ they have other powers to collect their debt. HMRC is one of the few bodies in the UK that can legally seize assets without a court order.

The seized assets are typically sold off at ‘fire sale’ prices that usually fail to cover the amount of unpaid tax and reduce the chances of other creditors being repaid.

It is also possible that businesses who repaid debts under the ‘Time to Pay Scheme’ are now finding it difficult to get a second chance to use the scheme, despite a previous good record of payment, denying a much needed last chance.

If you have a distraint threat or if you have been visited by an HMRC officer or Baliff, DO NOT IGNORE IT. You must act to protect your position and avoid seizure of assets that may have a catastrophic effect on your business. To know more please visit http://www.mcalisterco.co.uk/index.html  . We’d  be glad to accommodate you.