VAT late payment

#debtline #VAT blog: If you pay your VAT late to HMRC, even one day late, your account will be marked for a VAT penalty called a 'default surcharge'. The first late payment doesn't attract a penalty, but the second occasion on which you are late within 12 months triggers a penalty of 2% of the VAT due. The third, fourth, and fifth occasions of lateness increase the percentage of the penalty to 5%, 10% then 15% of the VAT due.

You may not notice the first two penalties set at 2% and 5% of the VAT due as HMRC will only demand payment from a small business if the total penalty amounts to over £400. However, you will receive a warning letter, and you should appeal against the penalty if you had a reasonable excuse for paying late.

Not having the money available to pay your VAT bill is not a reasonable excuse. If your business has a cash flow problem you need to ask the HMRC business support service for time to pay before the VAT becomes payable. The number to ring is: 0300 200 3835 site here, and it's open every day. Don't ring the VAT helpline as they can't deal with VAT debt issues.

If your VAT payment was delayed by circumstances outside your control, for example a computer failure at your bank, that would be a reasonable excuse. However, you do need to present evidence of this reason when asking HMRC to review the penalty. Around 60% of VAT penalties are overturned on review. 

Capital Renew provide many businesses with funds (even for late VAT) for contact see here

If you need further advice on debt then please contact Twinpier

Refurbishment loans (a Capital Renew featured article)

On the whole, mainstream Banks are not interested in lending for this purpose; we have no such problem in funding shop / pub / restaurant / cafe re-launches, refurbishment, make-over’s or new building works.
We welcome approaches for bigger schemes too as funding for up to £200,000 per business is available from Capital Renew. What ever the project contact us for a chat and the possible funding of your plans here

Unsecured Business Loans (a Capital Renew featured article)

When trying to decide which is the best #unsecured #businessloan it’s not just a matter of finding the best rate, although this is a major consideration. Speed of service and the number of hoops you have to jump through are of equal consideration.
If an entrepreneur needs funding in the next 14 days a meeting with your bank manager some 3 weeks away isn’t going to help.
Lots of business owners also come up against the “full business plan” hurdle, that is to say mainstream lenders require a full business plan which if you haven’t got one on the shelf ready to use can take you equally just as long to prepare.
It’s all very different at Capital Renew – for a refreshing approach to funding your plans please view our application form.

Introducing Capital Renew

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Your business may qualify for our business cash advance service

Bank loans are increasingly hard to come by and personal guarantees from most commercial banks mean often your home is at risk. Our cash advances require no security or personal guarantees from company directors, furthermore our quotes leave no credit checks markers. Our funding goes from £5,000 up to £100,000 and are paid back via the future credit/debit card sales through your existing PDQ terminal (no change of terminal or bank account is necessary), repay your advance typically over a 6-9 month period, at variable amounts to suit your trading position.

Application form here Apply 2014
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