Unpaid VAT

Small businesses should be aware that HMRC is taking a much more proactive stance at recovering unpaid VAT.  HMRC is also less prepared than it was a year ago to allow businesses to defer tax payments under its "Time to Pay" scheme, so businesses really do need to get their payments in order or they could face the real risk of having their assets repossessed.

HMRC had previously reserved its use of distraint proceedings to recover unpaid payroll tax.  However, since the recession it has been far more active in recovering other types of unpaid tax, most notably value-added tax.