19th July 2015 Posted by - Alexander Accountancy
Summer Finance Bill – could give HMRC access to your bank accounts
If the Summer Finance Bill is passed as expected, then HMRC will be given powers to collect outstanding taxes and tax credit debts direct directly from the debtors bank or building society accounts.
There are certain restrictions to protect cash flow issues so that at least £5,000 is left. With the official position being that they will only be taking money from “debtors who have the means to pay but choose not to”.
But our experience is that £5,000 is not sufficient cash flow for many small businesses where it would not be enough to cover the rent, wages and other regular bills that usually hit at the end of one month or the start of the next, which may only be 2 consecutive days.
Leaving such a low minimum level, if enforced, could result in some small business being unable to pay wages or other key operating expenses, cause the businesses to fail and ultimately cost some voters their jobs.
How do you protect your business? The old saying that information is power is very true. Up to date records and accurate forecasts is one solution Alexander Accountancy recommends so you can keep ahead of the game. We can also suggest some simple strategies to help “HMRC proof” your bank & building society accounts. Call us on 01283 743851 or click here to contact us via the website