Problems with VAT Payments for Businesses…
What happens if I don’t pay my VAT?
There are a number of problems with VAT payments for businesses. This is because failure to submit VAT payments by a business is not taken lightly and will have a direct financial impact on the company.
It is a business responsibility to file their VAT return online and make electronic payments on time. Consequently, a business can accrue substantial penalties from HMRC should they fail to pay their VAT. While there is typically no financial penalty for a first offence, failure to pay can result in a surcharge liability notice. Failure to pay your VAT again will result in a penalty charge, which will increase your business costs – a devastating effect for a company that is already struggling financially. As stipulated by HMRC, “You will have to pay a surcharge if you do not pay on time.”
For this reason, it is essential to make arrangements to manage your cash-flow problem to avoid a late VAT payment. Contacting HMRC once a company has recognised this issue is a fruitful starting point, or contacting a firm that can assist with any cash-flow problems can also help prevent the onset of costly penalties accrued by late VAT payments. Here’s how…
The benefits of professional services for VAT funding
Despite the previous negative perceptions attached to VAT funding, businesses are increasingly discovering their efficiency in managing cash flow.
This shift in perception can be attributed to both pressures with regards to VAT payments, as well as the increasing difficulties businesses are experiencing with juggling cash flow problems, a factor that will likely be exacerbated by the current global pandemic.
Consequently, thinking about cash management ahead of time can ensure that you are prepared for recurring payments and do not have to worry about incurring substantial fines that could put your business out of practice. Considering VAT funding can improve your business proposition and allow you to navigate your way through various peaks and troughs.
Indeed, businesses should not be restricted by VAT payments. Access to VAT funding facilities can enable expansion within a business, whilst managing regular HMRC payments. VAT funding is a fruitful way of managing this recurring expense while releasing internal capital within the business by spreading the VAT payment over the following quarter.
JPM VAT Funding
VAT funding has become an extremely popular service among professionals. Whether it be in the corporate or the health sector, professionals are embracing the flexibility synonymous with VAT funding.
At JPM Capital, we have provided thousands of VAT funding solutions for a variety of clients, enabling them to manage the peaks and troughs of cash flow and combat the cyclical nature of VAT payments, whilst allowing them to grow their business – even during economic hardships. Our specialist VAT funding facility can effectively turn a quarterly payment in advance and we will allow you to plan ahead and make sure there is enough working capital within your business for the VAT payments.
Call us today to find out how we can help!