HM Revenue & Customs is Creating a Graveyard

The Government needs money, and - as governments always have - it is looking to find it by raising or collecting taxes. Consequently, H.M. Revenue and Customs is taking an increasingly hard line all round in an effort to collect tax that it believes is owed - and actually, truth to tell, probably is owed.

The most visible result of the 'hard line' taken by HRMC is the increase in the number of Winding-up Petitions it has issued in the second quarter of this year.

HRMC was always a very good customer of the Court Service when it came to issuing Winding-up Petitions - as anyone can testify who has ever stood (as I certainly have!) in the issuing queue behind them - and in a very good economic climate that might not have been a very good thing, but it was at least an acceptable thing. At the moment, however, HMRC seems to be intent on excelling itself in this and every other area, and I wonder whether, given the present economic climate, that might not be a very bad thing indeed. I certainly find it a doubtful proposition.

Would it not be more sensible to allow companies facing 'critical' financial problems more time to pay? Would it not be more sensible to demand less tax from those companies for the time being so as to allow them to trade their way out of their problems and keep their employees, rather than sending potentially viable and vibrant businesses to the graveyard and creating further employment? Would it not be more sensible, in fact, to have a more flexible tax system?

According to Begbies Traynor's Red Flag Alert Report worst-hit sectors are travel and tourism, hotels, and general retailers. Forgive me if I'm mistaken, but I believe that the UK has been living on those particular golden eggs for years now.

So tell me, where's the percentage in winding up the Geese?