Referring to the “taking control of goods power”, Funding Options noted HMRC can seize assets from companies that have outstanding tax bills to pay. The goods are then auctioned off to generate the money owed.According to the research, 649 businesses has assets seized in 2014/15, but that number has surged to 1,592 in 2015/16. The assets were confiscated by HMRC to obtain £42.6m of debt in the last year, which is up 175 per cent year-on-year from £15.3m. The problem with the “increasingly aggressive method” that has been employed by HMRC as part of a crackdown, according to Funding Options, is that the items achieve a lower than expected buying price. That means companies have fewer assets to make use of, while debt remains in place. Conrad Ford, CEO of www.fundingoptions.com, said: “With the stark rise in asset seizing it’s clear that HMRC are cracking down on those businesses with overdue tax bills. “Businesses must ensure they have sufficient funding in place to pay tax bills on time, without taking up capital from other aspects of the business.”
Read more on tax and accounting:
- Why we need to harness the power of digital data
- George Osborne takes on tax dodgers and corrupt funds
- Who’s at risk from HMRC pursuing tax-evading sellers at eBay and Etsy?
The PM in Panama – Why would you use a trust or offshore company?Image: Shutterstock
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