FILE PHOTO: Britain's Chancellor of the Exchequer Rachel Reeves delivers her keynote speech at Britain's Labour Party's annual conference in Liverpool, Britain, September 23, 2024. REUTERS/Temilade Adelaja/File Photo
LONDON: The UK tax office is taking a tougher approach to clawing back debts, according to insolvency specialists, a bid to squeeze £5bil (US$6.5bil) in extra revenue that is adding to pressure on firms going out of business.
The move by HM Revenue & Customs (HMRC) to recoup owed taxes from collapsing businesses – including more use of debt collectors, less leeway on payment arrangements and moving the tax office up the hierarchy of creditors – has made corporate rescues more difficult and had a chilling effect on the availability of credit to save firms, according to people in the industry.
