HMRC could help close the high street?

[Guest DaveW]

Businesses that get in trouble and get behind with their taxes, like some ailing high street stores, could be wound up by the Tax Man as well as their suppliers or banks:-

"Anthony Cork, partner at Wilkins Kennedy, said: "When businesses run into trouble, often one of the first things they do is try to delay tax payments to help manage their cash flow - this puts businesses on a collision course with HMRC."

""HMRC does not like being used as a 'lender of first resort', and is keen to dispel the image that it is a soft touch or that the unauthorised late payment of taxes is an acceptable way for a business to resolve cash flow problems."

"Late last year electrical's chain Comet went into administration owing an estimated £26m in unpaid VAT and payroll taxes."

http://uk.finance.ya...-072056505.html

Edited January 21, 2013 by DaveW

[Guest]

Can't really blame the HMRC for insisting on being paid the money they are owed. First rule of business, Pay the tax man.

[Guest DaveW]

Makes you wonder how much quicker Comet would have had to close if the Revenue had insisted on payment sooner before they ran up a £26 million tax bill and how much quicker their assistants would have been out of work and looking for a job? The problem is once lenders or suppliers get their fingers burnt providing credit the quicker they are to stop firms running up bills in future, so any firm with cash flow problems will probably now be put into administration far quicker than in the past.