COVID SUPPORT  LOANS THREAT?

I am sure we are not alone in being surprised to read recently that the Government is writing off £4.3 billion in fraudulent Covid support loans.

Whilst this will be music in the ears of those who committed fraud and presumably are enjoying the spoils of their illegal activity we would urge caution that this should not be taken as a sign that HMRC will not pursue legitimate businesses that owe tax and/or interest and capital repayments of covid loans.

HMRC appear to be taking a pragmatic view on giving businesses and individuals time to pay but these liabilities will still need to be settled. No doubt many others will be frustrated that Government is letting hundreds, if not thousands, of people to ‘get away with it’ and might be thinking ‘if they can so can I’.

We would urge anyone thinking like that to be realistic and accept their liabilities because, having written off so much money, we are sure that HMRC will look for the ‘low hanging fruit’ and realistically individuals and registered companies are very visible to HMRC due to the regular submission of tax returns and company accounts.

As we have said before, the earlier the problem is addressed the greater there is chance of a successful outcome. With this in mind, if any of our contacts are involved with, or knows of any business currently facing financial challenges, we would urge that decisive action is taken by seeking independent professional advice and that is why we are always available for an initial zero cost assessment which can be arranged by contacting Alistair Dickson. Not least because HMRC will not wait forever.