The Top Six Letters You should Avoid Receiving from HMRC at All Costs

Itís often something we donít like to discuss Ė because itís a depressing subject, after all; taxes seem to drain the company of valuable resources and we often wonder why. Itís a fact, has been a fact throughout history, and will remain a fact for the foreseeable future: taxation is real and nobody can escape it.

On a positive note, however, itís those exact taxes that pay for the means for you to continue your business. Whatís more, there are many ways in which you can make the whole taxation business go very smoothly, simply by following a couple of standard rules. In the end, itís all about being safe and avoiding unnecessary problems. Here are the top six letters you should avoid receiving from HMRC at all costs.

The overdue letter

This is one of those annoying letters that you are bound to receive if you havenít paid your taxes on time Ė theyíre bound to come in the mail, have no false illusion that HMRC would neglect to send it. If you canít afford to pay it immediately, itís best to contact them and be straightforward Ė there are certain deals to be made if you approach it wisely.

Enforcement by distraint

This is the letter you receive if your taxes havenít been paid for a long time. Avoid it. You are under threat to have property confiscated.

Controlled goods agreement

This kind of letter used to be called the Ďwalking possession agreementí. It basically states that you are long overdue with your taxes and someone will visit the premises to evaluate what can be sold in an auction.

Winding up warning letter

When all other means to make you pay your due taxes are exhausted, youíll receive this warning. Basically, itís a warning that says theyíre ready to liquidate your company.

Winding up petition letter

Basically, the liquidation procedure is going to end up in court. Respond immediately with objections!

Objection to company strike off letter

In essence, HRMC is refusing to declare you bankrupt; theyíre after you.

Take note: if you ever receive any of these letters, then something is seriously wrong and you need to spend time reflecting and finding a solution. Does it make things difficult? Maybe, maybe not, but itís a problem to solve, and it needs to be done the right way. Hereís one final hint: HMRC conducts regular investigations, and thereís a good chance you will be targeted at one point in the future Ė they often select enterprises at random. Be prepared for it and donít take it personally, as advised by accountants in central London from experienced firms like GSM & Co. Remember, itís just part of business. If you do things the right way, they will appreciate that. Do things the right way; prevent problems, and stay safe.

Image attributed to Stuart Miles/