Begbies Traynor Group

Overdue VAT Payment Letter from HMRC

Date Published: 12/01/2020

Example of Overdue VAT Payment Letter from HMRC

HMRC Overdue VAT

What does this letter say?

“Please pay £XXX. We recently wrote to you about the business’s overdue VAT payment. Our records show that the amount shown is still overdue and that your business has previously defaulted in the past twelve months.

If you do not pay or contact us, we can visit your premises in order to arrange for assets to be sold by public auction as the law allows.”

What does this letter mean?

One of the most common reasons for company insolvency is unpaid VAT. As VAT is largely paid on a quarterly basis, it can often be overlooked or catch directors out through a lack of forward planning. In this scenario, HMRC has grown tired of waiting to be paid and has contacted a company a number of times to chase payment but to no avail.

HMRC can be highly demanding in their attempts to recoup liabilities such as VAT payments and communication is often the key. A ‘head in the sand’ attitude and a failure to respond can often lead to greater problems and HMRC is generally less tolerant with those who simply ignore them. If your company continues to fail to meet its tax liabilities, the next step is for an HMRC Enforcement Officer to visit your business premises and begin the process of totting up assets to be seized and sold at public auction.

It doesn’t need to get to this stage. If you’re struggling to pay your VAT, it’s best that you talk to a licensed insolvency practitioner as soon as possible – contact your nearest Begbies Traynor office.

About The Author

Meet the Team

Jonathan was a founding director of Cooper Williamson which was acquired by Begbies Traynor in October 2013. 

Jonathan was involved in the inception and continued with the development of the "Real Business Rescue" website, which provides advice and assistance for the directors of limited companies which are experiencing various degrees of financial distress throughout the UK. 

Jonathan is a member of the Insolvency Practitioners Association MIPA and is a Member of The Association of Business Recovery Professionals MABRP.

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