Firms can’t reach HMRC as tax deadline looms

Small businesses struggling to pay their tax bills are reporting long waits to get to the IRS and Customs before the self-assessment deadline on Tuesday. Some are on hold for hours, a situation that only adds to the stress of those struggling to pay after the pandemic has eroded their profits.

Julie Simmonds (not her real name) runs her own HR consultancy in Sussex. Due to a downturn in business due to the pandemic and taking maternity leave, she had to draw on her tax savings to cover costs and is now unable to pay a £25,000 tax bill.

“I spent hours on the phone talking to someone who could help,” says Julie. ‘I offered to pay £500 a month to lower my bill until I get back to work full time but they said no. I’ve never had a problem paying my taxes, but they just don’t want to know. It’s been incredibly stressful.’

Another sole proprietor says, “I was on hold for six hours last week and still haven’t resolved the issue. I’ve been worrying about it all weekend, because they just don’t answer the phone.’

Martin McTague, National President of the Federation of Small Businesses, says: ‘It is a crucial time for small businesses and the self-employed as the tax deadline approaches, so small businesses struggling with their bills should contact HMRC as early as possible to see if they are eligible for a Time to Pay plan.

“HMRC should not drop the ball by forcing small business owners to put time on hold before actually talking to someone. Admitting you need help with your bills is daunting enough, and long response times only add to that burden.”

Emma Jones, founder of small business support platform Enterprise Nation, says: “We are urging businesses to develop a risk management plan to minimize the impact of higher costs, control cash flow by chasing payments and make a habit of regularly setting aside money to pay taxes.’