More Assets Being Seized to Settle VAT Bills
New data has been released that shows that the number of companies whose assets were seized to settle VAT bills saw a significant increase during the recession. The data has been revealed by Syscap, a notable finance provider.
The data shows that in the period during the recession between 2008 and 2013, the number of companies that had assets seized for this purpose increased approximately fourteen times over. In the 2008/9 financial year, only 263 companies had assets seized to settle VAT bills. By contrast, 2013 saw this happen to 3,657 companies.
These seizures generated VAT revenues of £92 million in 2013. However, as prices are usually low to achieve a quick sale, the actual value of seized assets is likely to be much higher.
According to Philip White, Syscap’s Chief Executive, the increase in seizures “will be a huge concern to SMEs who have been struggling to cope during the downturn.”