If your company has escalating debts and creditors are chasing you for payment that your company cannot afford, there is little time to waste.
A common problem for businesses is Corporation Tax, PAYE or VAT arrears. If you are behind with your tax and paying late, this can sometimes be an indicator that your company could be insolvent. HMRC are quick to act when it comes to late payments and arrears.
One of the first steps would be to instigate a Time to Pay arrangement with them. This would assist with cashflow allowing you to repay what you owe over a longer period and to eventually bring your tax affairs up to date.
HMRC prefer to speak on the phone with you directly to enable them to assess the viability of you being able to make reduced payments to them over a set period. It is during this call that they will look to establish your ability to repay and steps you are taking to avoid this happening again. They will also advise what happens if you do not stick to the agreed repayment plan or if you provide them with false information.
The first thing HMRC will assess is the company viability. Naturally when they speak to most business owners there are cash flow issues which have prompted the call. HMRC will always look to get you to repay in as short a time as possible, usually within 6 months, but it is possible to negotiate much longer repayment periods. Each case is judged on its individual merits and this will determine what HMRC will be prepared to accept.
Should you be in an arrears position with your VAT, Corporation Tax or PAYE then Clark Oliver have many years of experience advising on Time to Pay arrangements (TTP) and their viability. Although a TTP arrangement may seem like the sensible option, your business may be suited to other restructuring methods. Give us a call today for a free no obligation chat to see what options are available to you.