The number of companies facing closure in Britain has risen sharply

In the UK, the number of applications for the closure of companies due to unpaid taxes has sharply increased, BLOOMBERG reported .

Over the past year, HM Revenue & Customs has filed for closure of 2,391 companies over unpaid taxes, more than three times the figure for the same period last year, according to data from accounting firm UHY Hacker Young cited by the agency.

“The huge increase in HM Revenue and Customs filings is a clear sign that the tax authority is more aggressively pursuing tax debts,” UHY Hacker Youn spokesman Peter Kubik said.

Bloomberg notes that the tax authority was prohibited from petitioning to cease the activities of organizations until the end of March 2022 as part of measures to protect companies during the covid-19 pandemic . As a rule, the department submits appropriate applications to bring to justice enterprises that are indebted to creditors. A winding-up petition, which could result in the liquidation of the company and the distribution of its assets, can be resolved through payment of the debt, the agency notes.

The agency, citing the UK government's monthly report dated December 15, concludes that there is an increase in the number of forced liquidations of companies, which are usually initiated by creditors in an attempt to collect debts. According to Bloomberg, in July, the UK Insolvency Service reported an increase in the number of applications from HM Revenue and Customs to wind up businesses.

Bloomberg attributed the increased pressure on British companies to high energy prices, persistent inflation and a falling cost of living hitting consumers. Moreover, in some cases, the agency notes, organizations gave preference to other creditors rather than the tax authority,

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According to the latest HM Revenue and Customs report cited by the agency, between July and September 2023 debt to the agency reached £37.7 billion ($48 billion), compared with £31.2 billion in the same period two years ago.

Bloomberg notes that The Vampire's Wife company announced in the summer that it had filed a petition with the tax authority without warning, and the Reading and Southend United football clubs were able to reach an agreement with the department after receiving a petition for liquidation.

“We are seeing a much more aggressive approach from the tax authority in response to reasonable requests for payment deadlines,” the agency quoted UKHospitality chief executive Kate Nicholls as saying. “We would urge them not to take hasty action that could cause problems, particularly in smaller independent businesses, where a little common sense and pragmatism would help the business weather short-term difficulties that are sure to improve.”

A HM Revenue and Customs spokesman told the agency that such applications are only made as a last resort, and company liquidation rates return to normal levels after the end of measures to protect businesses from the effects of the pandemic. “We support clients who have tax debts and file for termination only after we have exhausted all other options to protect taxpayer dollars ,” Bloomberg quoted a tax official as saying.

Earlier, the Organization for Economic Co-operation and Development, which includes the UK , thought about revising taxation against the backdrop of the spread of remote work from abroad. Bloomberg noted that the CORONAVIRUS pandemic and the popularity of Zoom conferences have blurred the line between work and play, a new generation of “digital nomads” has emerged who earn money in one country while being in another, with clear rules on how foreigners should pay taxes before they become residents, no.