{"id":6399,"date":"2025-05-29T11:12:22","date_gmt":"2025-05-29T10:12:22","guid":{"rendered":"https:\/\/www.bainesjewitt.co.uk\/blog\/?p=6399"},"modified":"2025-05-29T10:12:24","modified_gmt":"2025-05-29T10:12:24","slug":"are-rising-tax-arrears-putting-your-business-at-risk","status":"publish","type":"post","link":"https:\/\/www.bainesjewitt.co.uk\/blog\/are-rising-tax-arrears-putting-your-business-at-risk\/","title":{"rendered":"Are rising tax arrears putting your business at risk?"},"content":{"rendered":"<p>Businesses in the UK are facing increasing financial strain, with new data from HM Revenue &amp; Customs (HMRC) showing that tax arrears have hit \u00a328 billion per month on average across the first quarter of 2025.<\/p>\n<p><!--more--><\/p>\n<p>Unpaid Corporation Tax, VAT and PAYE liabilities are growing, and recent increases to National Insurance contributions (NICs) are expected to deepen the problem.<\/p>\n<h3><strong>Corporation Tax, VAT and PAYE debts reach new highs<\/strong><\/h3>\n<p>Freedom of Information data released by HMRC reveals the extent of the issue:<\/p>\n<ul>\n<li>Corporation Tax debt stood at \u00a37.52 billion in January, \u00a37.14 billion in February and \u00a36.79 billion in March<\/li>\n<li>Unpaid VAT liabilities averaged \u00a312 billion per month, peaking at \u00a312.55 billion in February<\/li>\n<li>PAYE and employer NICs arrears came in at over \u00a38 billion per month across the quarter<\/li>\n<\/ul>\n<p>These figures are likely to rise as we see the impact of the increase of employer NI rates (13.8 per cent to 15 per cent), combined with a lower threshold.<\/p>\n<p>At the same time, businesses are contending with weakened cash flow due to US tariffs and mixed trade conditions.<\/p>\n<h3><strong>Risks of falling behind on tax payments<\/strong><\/h3>\n<p>Missed or late payments to HMRC can quickly escalate into a serious financial risk.<\/p>\n<p>Enforcement action, penalties and interest charges can all have long-term consequences.<\/p>\n<p>On top of this, businesses under financial stress may find it harder to secure funding or maintain supplier confidence.<\/p>\n<h3><strong>Steps businesses can take to manage tax liabilities<\/strong><\/h3>\n<p>There are several practical steps businesses can implement to reduce the risk of falling into tax debt:<\/p>\n<ul>\n<li>Improve cash flow forecasting to prepare for upcoming tax obligations<\/li>\n<li>Maintain accurate, real-time financial records to support decision-making<\/li>\n<li>Engage with HMRC early if arrears are building, Time to Pay arrangements can ease pressure<\/li>\n<\/ul>\n<h3><strong>Professional advice can prevent long-term damage<\/strong><\/h3>\n<p>As tax rules change and economic pressures mount, businesses need strategic financial guidance.<\/p>\n<p>We work with companies of all sizes to assess tax exposure, improve financial management, and negotiate with HMRC where necessary.<\/p>\n<p>If you are unsure about your tax position, or already feeling overwhelmed by growing liabilities, the most important step is to seek advice now, not after a penalty notice arrives.<\/p>\n<p>The figures may look daunting, but they are avoidable with the right support.<\/p>\n<p><strong>Speak to us today to take the pressure off your tax obligations and protect the future of your business.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Businesses in the UK are facing increasing financial strain, with new data from HM Revenue &amp; Customs (HMRC) showing that tax arrears have hit \u00a328 billion per month on average across the first quarter of 2025.<\/p>\n","protected":false},"author":2,"featured_media":6402,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,125,31,7,27],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/6399"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=6399"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/6399\/revisions"}],"predecessor-version":[{"id":6400,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/6399\/revisions\/6400"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/6402"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=6399"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=6399"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=6399"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}