That’s according to Steven Law, President of insolvency trade body R3. The most recent statistics show that business remissions and write offs have risen by 40% over the last year.
The biggest clampdowns are of companies who’ve had two or three chances to pay their debts, and now HMRC are able to call on the services of private debt collecting agencies to recoup unpaid taxes.
The revelations were made in a recent report by The Telegraph and much of it involves companies who have partaken in the ‘Time to Pay’ scheme brought in by the Labour government at the back end of 2008. The whole idea behind it was to allow struggling businesses to defer the payment of VAT, income tax, corporation tax or PAYE.
Now, after a massive increase in the number of repeated deferrals, HMRC seems to have got tough.
HMRC meanwhile deny a more aggressive approach to debt collection and insist it’s just a result of an increase in bad debts.
The good news is that less businesses have signed up to the ‘Time to Pay’ scheme which is reflective of a healthier economic climate. How the economy will shape up next year is not quite so certain as Government cuts start taking effect.