£1.82bn Now Owed by UK Businesses in Late Corporation Tax
Research suggests small enterprises are increasingly struggling to pay tax bills with arrears up by 15% on 2015
Despite the fact that UK businesses benefit from one of the lowest corporation tax rates of all major economies – 20% for companies with profits of up to £1.5m – business owners are struggling to pay their Corporation Tax on time and now owe £1.82bn in late tax payments.
This figure, reported by Funding Options in its latest research for 2016, is a 15% increase on 2015 (£1.59bn) and suggests that cashflow pressures are growing for companies.
With businesses already unable to pay Corporation Tax when due, Funding Options has predicted that this issue will worsen over the next year given the slowdown in the UK economy since the Brexit vote.
Business owners who are concerned about falling in Corporation Tax arrears have been encouraged to consider using alternative funding options such as invoice finance, P2P lending and crowdfunding to pay off tax due.
Conrad Ford, CEO of Funding Options, commented: “We have seen an increasing number of companies come to us for funding in order to pay their overdue tax bills.
“Businesses need to make sure they have the adequate funding to pay tax bills on time, without taking capital from other areas of the business.”
For a comprehensive guide to Corporation Tax, click here.