HM Revenue & Customs has increased its late payment interest rate to 6% on unpaid income tax, national insurance and corporation tax, amongst others. This interest is in addition to any fines imposed by HMRC. The details of this increase, effective from 6 January 2023, can be accessed here.

The consequences of this increase – a 14 year high – to businesses already struggling from increased costs, is likely to be further increases in insolvencies for 2023.

Whilst some hurdles remain in Northern Ireland in respect of Creditors’ Bankruptcy Petitions, the most significant one being that the Petition debt is grounded on a court judgment, decree or other court order, this does not apply to HMRC who may proceed without that requirement.

Furthermore, recent Court Guidance issued on 16 December 2022 has indicated that the lifting of the restriction on filing new Creditors’ Winding Up Petitions will take place in early 2023.

With insolvencies based on HMRC Petitions likely to rise in 2023 if you are concerned about your business, its debts or future prospects now is the time to take the initiative and obtain expert advice. Our Insolvency team is available on 028 9024 2450 to discuss your needs.