It is surprisingly common for individuals or businesses to get to end of the tax year and find themselves faced with a tax bill that they simply can’t pay. Many times it is not even the company’s fault, entrusting their accounts to outside accountants who simply don’t do the job right and leave the company facing a rather hefty debt which they may not be able to pay.
Unfortunately though, even if it is an accountant’s fault, the responsibility to pay still falls squarely on the shoulders of the company. It is this very scenario that is thought to be responsible for around 10% of all bankruptcy and liquidation.
So it is vital that even if you have entrusted your tax dealings to an outside party, that you keep some eye on your tax liability yourself so as not to wind up with some nasty surprises. Check in with your accountant (or even your own accounting department) regularly to see that things are under control, and take the time to look at the figures yourself from time to time. It is worth remembering that tax won’t just be VAT, but will come from other sources including payroll and personal earnings.
For those who have accrued large amounts of business debt as a result of an unexpected tax bill, liquidation or bankruptcy doesn’t have to be the only answer. There are a number of company debt rescue services that can be offered to those with a viable company who simply have found themselves in a position where they are unable to pay tax.
And it is not just business debt from tax issues that can be solved using company debt rescue services. However if a company has fallen behind, there is a good chance that there is an option that will mean they can get themselves back on track as quickly as possible.