Accountants report the increasing customer conflicts

A study by Premium Credit indicated that there is an increasing trend among customers who face challenges in settling their tax obligations, as the average amount due was reported at 120,000 pounds (161,563 dollars).

The results indicate that 94 % of accountants and financial advisors have noticed an increase in customers who are struggling to pay their taxes over the past year.

More than 60 % of the respondents noticed 10 % or more in the number of customers who face such challenges.

An increase in cases of income taxes has been increased, and 70 % of the respondents mentioned.

In addition, 40 % of customer increased unable to meet value -added tax payments, while 39 % indicated difficulties in corporate tax.

On average, 13 % of customers currently face tax payments problems, according to the study.

The main factors that contribute to these difficulties include tax increases and expected future rise, which are set by 50 % of professionals included in the survey.

Another 43 % attributed the conflicts to reduce profit margins. This is a transformation from 2024 data, 37 % indicated tax increases as the main concern, and about 40 % mentioned a decrease in revenue.

In 2024, 54 % of the respondents indicated that the cost of living was an important factor, but this year, this number decreased to 30 %.

We look forward, there is an expectation between accountants and financial consultants to increase the use of the HMRC payment system (TTP), which provides companies with additional time to process tax arrears.

Currently, only 25 % of accountants and consultants are that 5 % or more of their customers use TTP. However, nearly two -thirds (63 %) expects this number to rise over the next three years.

Moreover, there is a prevailing belief that the participation of HMRC in the seizure of assets for unpaid corporate tax will rise, with 81 % of the respondents expect an increase in these procedures over the next five years, and 19 % expect a significant escalation.

The research also revealed that 94 % of accountants and financial advisors believe that their customers will be open to use a service that allows them to spread the cost of tax bills for a symbolic fee, regardless of their current financial difficulties.

“All accountants and financial advisors in our research are increasing in customers who are struggling with tax bills and a large medium invoice,” said Jenny Hill, the chief trading official of Premium Credit (specialized financing).

“Accountants and financial advisors need to deal with customers who face tax problems and provide practical solutions such as spreading costs to comfortable monthly payments.”

“Distinguished Credit: Accountants have been created on the increasing customer conflicts” in the first place International Accounting BulletinThe brand owned by Globaldata.

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