If your company is experiencing financing problems, it is likely to be unable to pay VAT and PAYE. HMRC is one of your main business creditors and lack of in-depth VAT debt management may lead to insolvency. Filing and paying VAT revenue late signals to HMRC that your firm could have insolvency issues in the coming years. As a consequence, you need to consider seeking expert advice from certified and experienced insolvency specialists.

The Insolvency Experts have been working with thousands of businesses in the UK to help them come up with a robust HMRC VAT payment plan to avert undesirable outcomes from failing to pay HMRC VAT charges at the right time. We ensure that the agreed VAT payment plan best serves the interests of your business.

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4 Key Questions on VAT Debt Management

What are the options for VAT debt management?

Our highly-skilled team of insolvency experts can assist you in negotiating enough time to settle the debt through the “TTP-Time to Pay” plan with HMRC. A TTP plan allows you to pay the amount owed to HMRC in monthly instalments within one year. Should you find yourself unable to pay VAT, we can assist you to negotiate with HMRC for a VAT payment plan with prolonged period of payment.

Entering to a TTP allows you to clear your VAT debt in instalments, but does not lower the total amount due. The decision by HMRC to agree on a TTP comes with risk, so HMRC may require you to provide more information if they feel that there is a risk to the suggested HMRC VAT payment plan.

Here at The Insolvency Experts, we advise our clients to contact HMRC asap after learning that the financial position of the business has changed either for worse or for better. We can help to guide you through this in a way that best protects your financial interests. TTP is aimed at providing extra time for business experiencing different types of financial problems due to investments, expansion or otherwise. HMRC also needs to be satisfied with the VAT debt management plans that you, as the client you have the will and capability to pay the owed VAT arrears within the agreed timeline.
 

What are the penalties for unpaid VAT debt?

Failure to pay VAT can adversely affect the smooth operation of the business. Every business has an obligation to file VAT returns and make online payment on time. VAT returns must be filed on quarterly basis. You need to make VAT payments within 7 days after the expiry of your VAT period.Failure to do so comes with severe consequences. HMRC can affect significant penalties to any business that fails to file and pay VAT returns on time:

  • An initial offence does not come with a financial penalty, but a business that submits a late return or pays VAT late receives a surcharge liability notification from HMRC.
  • After this first offence, any future failures will be met with a penalty charge

You should also know that there are no allowances made with HMRC in regards to late or non-payment of VAT, so whatever the cause, it will be dealt with in the same way. If you realise that you have a cash flow problem that is going to leave you unable to pay VAT, you need to contact certified and experienced insolvency practitioners who will be able to help you put together a VAT payment plan with HMRC.

Here at The Insolvency Experts we offer specialised advice and will also be able to help you to contact HMRC and negotiate a TTP agreement to provide you with sufficient time to pay. We usually try to negotiate with HMRC to allow our clients to pay in instalments, giving you a chance to recover financially and meet all of your commitments.
 

Can a VAT payment plan help to avoid insolvency?

It may seem premature to immediately start talking about insolvency at the point of your first late VAT payment, but in reality, it is a vital point to consider, as even the first occasion you are unable to pay VAT on time will signal to HMRC that you could be insolvent, bringing their attention to your company in a range of ways.

Working with licensed and certified insolvency specialists will help you to develop a practical HMRCVAT payment plan that will help you to avert the aforementioned financial issues like penalties, surcharges and bankruptcy. Businesses struggle with their VAT debt for many reasons including:

  • increased competition
  • unexpected losses
  • a period of expansion
  • problems with investments

If you have a problem with your VAT debt management and are not in a position to pay for now, you need to seek expert advice to address the issue before HMRC decides to take enforcement action against you. Failure to comply with HMRC on an ongoing basis can result in a bankruptcy petition which is difficult to appeal. Once your business is declared bankrupt, it would be placed under the control of a Trustee until you clear all the HMRC VAT arrears.
 

How do I find trusted HMRC VAT debt management support?

HMRC take strict measures against any business that owes them outstanding VAT revenue. In some cases, so as soon as you notice you have outstanding VAT arrears and may be unable to pay VAT currently, you need to contact licensed and experienced insolvency professional like The Insolvency Experts to help you come up with an HMRC VAT payment plan that best serves your business interests and is satisfactory to HMRC.

The Insolvency Experts has vast expertise and experience in the field of VAT debt management so we can advise on the variety of options that HMRC provides to businesses who are unable to pay VAT. The TTP provided by HMRC features personable and special installment arrangements that can help your business to settle the VAT debt comfortably within an agreed timeline. So, please contact us today for advice and to help prevent further financial problems in your company.

How we’ve helped others through
rescuing their business

At the Insolvency Experts our sole aim is to rescue, recover and renew businesses that are in difficulty. We are specialists in corporate turnaround and help business overcome cash flow difficulties and other financial problems. Our experts:

  • Help you to take the appropriate steps to meet any impending deadlines
  • Have a long track record in helping companies in similar positions
  • Can help you take the best course of action, often using your assets to help you avoid additional cost

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We helped a struggling Birmingham restaurant from going into administation:

  • Turnover £890K
  • Total Creditors £94K
  • Assets £340K
  • HMRC Overdue £20K
  • Profit Now +£15K

We helped a marketing agency from going into administation:

  • Turnover £700K
  • Total Creditors £120K
  • Assets £20K
  • HMRC Overdue £30K
  • Profit Now +£80K

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Why Choose Us?

We understand you have already made every effort to avoid insolvency and day to day life is stressful at the moment. We can start immediately and quickly work with you through the process.

We see many examples of great businesses that have fallen on hard times or suffered through no fault of their own.

We understand that the company directors and shareholders have already tried valiantly to carry on trading, but circumstances dictate that this is no longer possible.

  • We Remove Stress
  • We Act Quickly
  • We Are Cost Effective
  • We Are Formally Accredited
  • We Are CVL Experts
  • We Act Confidentially

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