According to leading credit industry website Credit Today, HMRC last year applied to shut down 3,000 firms with unpaid tax bills. The team at Commercial Domestic Investigations know from our own experience as debt collection experts that many firms struggle to pay tax bills due to bad cash flow management.
July 31st sees many small businesses making large payments towards self-assessment accounts. This is a crunch time for many of these businesses, especially those who are owed money on outstanding invoices and don’t have the knowledge or capacity to put proper debt collection procedures in place.
Winding up orders
HMRC issued 3,000 winding up orders last year and was successful in 1,816 cases, this is a year on year rise of four per cent. Non-payment of tax is one the quickest ways to bring an end to your business, and the system sometimes offers no help, particularly regards VAT. VAT bills fall due according to the date that the invoice was issued, to HMRC it doesn’t matter if the invoice has been settled or not.
This is why strict credit control and debt collection practices should be a priority for a business. Here at Commercial Domestic Investigations we assist business owners in these areas to make sure that the business is never threated by a winding-up order caused in the most part by slow or non-payment of invoices.
Cash flow is king
One of the reasons Commercial Domestic Investigations launched its Business Guide to Debt Collection and Credit Control was to make sure business owners had the knowledge and tools necessary to help them avoid problems caused by cash flow issues. This includes very serious problems with HMRC.
In business cash flow is always king, and if your business is struggling due to customers making late payments Commercial Domestic Investigations can help. We can also help if you need credit brokerage services which may help you navigate any temporary cash flow blips.
About Commercial Domestic Investigations
Commercial Domestic Investigations are regarded within the debt collection and credit control industry as one of the best credit management companies in the UK. Established in 1988 to support and service all sizes of companies in the field of Credit Management.
Primarily our clients use our automated Debt Collection Services, but over the last eighteen years clients requirements have changed dramatically, something Commercial Domestic Investigations has addressed.
We now boast a national client base in excess of 30,000 companies. Commercial Domestic Investigations has grown by listening to clients’ requirements and adapting our services to meet all companies’ needs from Sole Traders, SMES, Ltd and Plcs. Please contact us on 08444 159200 for more information.