At some point, all businesses, whether large or small, will have to deal with H M Revenue and Customs when it comes to paying VAT, PAYE and Corporation Tax. When HMRC doesn’t get paid then they can start the debt recovery process to reclaim the arrears quickly. The consequences can be serious, including a winding up petition.
HMRC Debt Recovery
If a business is late in paying its tax or is unable to pay, either in full or at all, then it will come to the attention of HMRC quite quickly! It is important to remember that HMRC wants to collect tax and does not want to see a business go under, which is why there are steps that we can help you with to deal with HMRC debt recovery.
Once HMRC are told that a business is taking professional advice, then it is likely that collection and enforcement action will be suspended. This provides enough time for us to work out the exact problems faced by a business and the solutions available.
So although the worst case scenario of non-payment is a winding up order, there are steps that we can help you with to deal with HMRC Debt Recovery measures.
HMRC Debt Management from Poppleton & Appleby
Once HMRC are told that a business is taking professional advice, then it is likely that collection and enforcement action will be suspended to provide enough time for us to work out the exact problems faced by a business and the solutions available. We know from experience that HMRC appreciates being communicated with and knowing that debt management steps are being put in place.
HMRC may consider a “Time to Pay” arrangement that allows a business to pay off arrears over an agreed period of time. It is important however to prepare a robust and credible payment plan to demonstrate to HMRC that arrears can be paid off and also ensure that the business is entering into a commitment that it can keep to. Our team is here to help with this and to manage the debt management relationship with HMRC.
What Happens if a Debt Management Solution Cannot be Found?
Sometimes a solution cannot be found within the current business or enforcement action is at the very advanced stage of a Winding Up Petition. Even if it seems all hope is gone, we can still help.
If an insolvency process is required, we will explain the options available whether it is the preservation of a business through a Voluntary Arrangement with its creditors or whether a Liquidation or Administration process is appropriate. Even then, it is possible for a business to emerge from its difficulties and trade on, providing it is handled professionally and with transparency.
If Your Business has HMRC Arrears, Act Now!
Whatever the stage you may be at with HMRC issues, don’t do nothing! The problem will escalate and the longer it goes on, the more difficult and limited the solutions become. Contact us or call us on 0121 200 2962 for help with HMRC debt recovery pressure.