The 2015/16 tax year saw a remarkable increase in the number of businesses whose assets were seized by HMRC.
HMRC seized assets to recover £42.6m of outstanding debt in the last year according to Funding Options, an online business finance supermarket,
This represents an increase of 175% on the previous year.
HMRC can seize goods from businesses who have unable to pay overdue tax bills under a power called ‘taking control of goods’.
Following a visit from a bailiff, businesses have seven days to pay back their overdue tax bills. If they fail to do so, HMRC can begin the aforementioned taking control of goods process.
Conrad Ford, CEO of Funding Options commented: “With the stark rise in asset seizing it’s clear that HMRC are cracking down on those businesses with overdue tax bills.”