Could the HMRC’s New Financial Security Scheme Damage Businesses?
The HMRC may claim that their new measures are designed to prevent companies who are not paying their PAYE tax deductions or National Insurance contributions on time from defrauding the HMRC.
However, many tax advisors feel that these new measures are having the opposite effect and are in fact damaging small businesses.
How does the scheme work?
Under these new rules, the HMRC will be asking employers who they feel are at risk of not paying the above taxes to pay a financial security.
If they don’t they will face fines of up to £5,000.
Now, whilst this may sound simple enough. Especially for businesses are wrongly not paying their taxes. What top tax accountants are worried about is the impact this will have on businesses who are genuinely struggling to raise the funds to pay these taxes.
Faced with potential fines of up £5,000 as well as criminal sanctions and insolvency, these new rules may force some businesses to increase their working capital; fire employees or attempt to get a loan in an economic climate that is not going to improve anytime soon.
How can chartered accountants help?
Luckily businesses will not have to face these new rules alone…
With the help of a tax accountant, they can help you to manage your taxes and ensure that you don’t fall into the ‘at risk’ category. More importantly they can help your business to overcome the burdens of the current economic climate and create a business plan which will ensure that your business prospers and becomes profitable.
So if you are worried about how these new rules may affect your business, make sure you speak to your accountant now. Alternatively, arrange for a free business appraisal today and make sure you have got a clever business accountant working to your advantage.