Businesses taxes

UK Businesses Owe £2.6bn in Overdue VAT

The HMRC are owed £100m more in arrears this year as UK businesses struggle to pay their taxes UK businesses owe the HMRC £2.6bn in overdue VAT, according to figures released by specialist finance provider LDF. The deficit has increased by £100m in comparison with last year, causing concern for UK businesses struggling to fund tax payments. For companies with a turnover in excess of £1.35m, VAT bills are issued on a quarterly basis and calculated on a company’s invoices, not the amount that has actually been received from customers over that period. Businesses are therefore often unable to keep up with their taxes as they are still awaiting payment from customers. This struggle to meet VAT payments could especially be an issue for small and mid-sized businesses as a recent report by the As... »