UK firms face collapse as tax man chases Covid debts, ‘red flag alert’ report warns
Pandemic-related delays in the court system were one reason more firms and workers have not yet been hit, it added.
Winding-up petitions, a more serious legal action, numbered 576 in the same period, up 131 per cent compared with 2021. A total of 610,405 UK businesses are rated as being in “significant financial distress”, up 4 per cent on a year ago. “They are already having to pay back the support they took to get through Covid and, anecdotally, we are hearing that both the Government and HMRC are becoming more determined in pursuing debts, while other creditors are increasingly turning to the law to recover their debts.
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