Tax Management: Everything You Need to Know About Tax Debts
Regardless of the size and nature of the business, the number of employees that it has under its wing, or its business structure, SMEs are required by the law to file and pay their taxes on time. Acknowledging the importance of tax compliance, some business owners opted to seek the help of tax accountants to keep their taxes in order. However, some still insist on working out their taxes on their own. While there is nothing wrong with this setup, the problem is that this may lead to non-compliance and later on, to tax debts.
Complying with your tax liabilities is difficult as it is but the consequences are graver if you don’t take your tax filing and payment initiatives seriously. In the event, though, that you start to become overwhelmed with tax debt, there are a few important things that you need to be aware of. Read on to be familiar with some tax debt FAQs:
1. How will I know if my tax debt problems are getting out of hand?
Make a habit of checking your tax statement of account. The most pertinent details about your tax debt will appear in this document. If you fail to check your statement of account and your taxes remain unpaid, you will receive a notification threatening legal action.
2. What can I expect soon afterwards?
Once it has been clearly established that you have a debt that you need to settle, the Debt Management and Banking (DMB) will attempt to get in touch with you. The DMB will then request immediate payment.
3. Should I course all my debt-related concerns to the DMB?
Contact the DMB to negotiate tax payment deadlines and special agreements. Meanwhile, you can get in touch with the Taxes Hotline at 0300 200 3300 if you think the tax bills sent to you are not accurate.
4. What if I entered some wrong information on my tax return?
If there are data entry errors on your tax return, you can easily change them via phone. Just make sure that you document the details of the arrangement in case disputes over your tax liabilities suddenly come up.
5. How long am I allowed to settle my tax debt?
There are different time frames and frequencies of payment that are offered for corporate taxpayers who have tax dents. Usually, the maximum time that you will be allowed to settle your payment is 2 months.