UK businesses currently owe HMRC £4.37 billion in overdue corporation tax and VAT as many struggle to find the cash to pay their tax bills, says Funding Options, the online business finance supermarket.
The total value of corporation tax in arrears hit a record high £1.89 billion in 2016/17 – rising from £1.82 billion in 2015/16 – with a further £2.48 billion in overdue VAT payments.
Funding Options explains that late payments by clients remains a major factor disrupting cashflow – often leaving companies unable to meet tax liabilities. Late payments are a persistent problem for many, despite numerous Government moves to try to reduce payment delays.