Recent figures show that the amount of assets seized by HMRC, using its controversial powers of distraint, is growing. Faced with this possibility, many SMEs are turning to asset finance as a way to clear HMRC debts, which if unsolved, could endanger their business.
The powers of distraint allow HMRC to arrive at business premises, unannounced, in order to collect unpaid taxes. Typically, a business will be then given five days to pay their overdue bill, alongside any penalties and interest. If payment is still not forthcoming, HMRC can then return to the premises and seize assets, without the need to secure a court order.
The seizure of assets by HMRC can deliver a fatal blow to small businesses that could lose valuable machinery, vehicles or IT systems, making it extremely difficult to continue trading.
Rather than lose their assets, businesses can use their assets to structure their finances in such a way that debts can be cleared, costs managed and cash flow kept at a healthy level.
Asset finance is growing in popularity with SMEs, not least because the success rate on application is the highest of all the major finance options.
Specialist providers, like Praetura Asset Finance, can be invaluable in offering the best advice and securing immediate access to funds, which can go a long way to taking the strain off SMEs facing increasing pressure from the taxman.
For more information, call us today on 0333 323 7800.