Falling into arrears with HMRC can have a significant detrimental impact on your business and its long-term future. Should this happen, matters can escalate quickly so it is important to obtain professional advice as soon as possible.
Time To Pay Arrangements
A Time To Pay (TTP) arrangement is an agreement with HMRC that allows you to make agreed payments over a period of time. Ignoring the letters and demands of HMRC is not advised and you should speak to an Insolvency Practitioner to ensure that your TTP arrangement is the best possible option for all parties concerned. Although HMRC are persistent debt collectors with a strict criteria, they can be amenable to an agreement over a period of time rather than forcing your business into Liquidation or Administration. Although a TTP arrangement will not reduce the size of your tax repayments and may give size to interest being charged, it usually gives businesses between six and twelve months to pay their arrears.
Company Voluntary Arrangements (CVA)
HMRC may be just one of the creditors that your business is struggling to pay. In this instance, if it can be shown that the business can return to profitability then a Company Voluntary Arrangement between you and your creditors can relieve the pressure facing your business. A CVA avoids your business from being wound up by HMRC or any other creditors for its historical debts. A CVA should only be considered if your business is facing significant financial difficulty from several creditors. If you have the money available to pay HMRC, and they are the only or major creditor, then an immediate payment or a TTP arrangement may be a better option. Deciding on the best course of action for your business is a daunting task so receive professional help from The Insolvency Experts today. We can determine the best debt management plans to suit your specific situation when dealing with HMRC arrears. Acting as quickly as possible can reduce problems for your business further down the line.
Contact The Insolvency Experts
The Insolvency Experts provide debt and Insolvency advice to businesses throughout the UK. Whatever financial issues your company is facing, from HMRC arrears to Administration, get in touch with the experts now. Contact us online or speak to us directly on 0300 303 8284.