During last year HMRC applied to wind up approximately 3,000 businesses regarding unpaid tax bills, according to a new study.
It is understood that of the 3,000 winding up orders issued by the Crown, 1,887 orders were made for the business to close down.
This was a four per cent rise from 1,816 in 2013.
VAT can often cause SME’s particularly, problems with cash flow, as the tax is payable each quarter notwithstanding the company may have been unable to collect the funds during the period.
Source: Insolvency News