HMRC are getting tough,this is what to do!

The Insolvency Service has just released its figures on Company Insolvencies.The Good News is that they are now at their lowest levels since Quarter 4 in 2007
However the bad news is Compulsory Liquidations rise for the first time since Quarter 1 in 2014.

904 companies were subject to a compulsory winding-up order in the last quarter a rise of 9.4% on the previous one.

This would suggest a much tougher line being taken by HMRC.

Don’t ask for an unrealistic Payment Plan!

Recently a client rang us for advice, they had a well established business but they had a big issue with HMRC. They wanted two things some funding and advice on the HMRC liability.

We put them through to our specialist, licensed to give advice on this subject. The client then informed us that their Accountants were in the process of agreeing a deal with HMRC over 12 months.In the circumstances we thought this was indeed a very good arrangement and left this in their hands.

All should have been well, but then they changed their minds and went for a longer period

This resulted in the file being immediately passed across to an entirely different division, who wished to serve a Winding up Petition. In the current climate, it was a completely wrong course of action.

Conversely

Agreeing a very short term repayment, with no real plans on how to do this is equally disastrous. Destroying your Cashflow to pay one creditor and leaving your business on the brink of Insolvency.
The consequences for the Company Directors futures and their families can be truly awful.Unfortunately, when a Company runs out of working funds or does not have sufficient reserves. A collapse can happen in days, leading to previously unforeseen personal liabilities for the Company Directors. An immediate stop on their family income, leaving the Directors little option but to borrow funds from family and friends, with no real way to repay the loans.
However in the vast majority of cases, all of this could have been avoided.

What you should do if you have HMRC or serious Cashflow problems

1.Take advice from a specialist, who deals with these matters on a daily basis. You would not take a Divorce Case to your Company lawyer?
It is especially important to take specific steps, if the Company Directors have any past history with HMRC.
If you are taking advice at present ask what their next step is, if HMRC turns down their proposal?

If an immediate clear and well thought out answer is not given, run for the hills, as you are risking your Company’s and your family’s future with the wrong advisor.

But you will say, we have been using them for years. There is no answer to that I am afraid, or is that the problem?

2.Finance, Cash Advances and a huge array of Finance Options are available and can be put in place very quickly, you should not be asked an upfront fee for any of this, if you are, probably again run for the hills as you are talking to the wrong people. We can and have, on many occasions, made finance available within 24 hours, but finance is not the only answer.

3.Don’t think you have tried all the options and there is no way forward or conversely, feel that your issues have gone, as you have arranged a payment plan.
Think of putting some Company Protection in place, ensuring your future income is never threatened again.
We are on Your side some Professionals are not allowed to be.
Normally our focus is on ensuring A Creditor or Bank/Finance House does not take charge of the situation before You the Company Director does.
Preserving the continuance of the “Core Business” which generates the income for you the Company Director, your family and your future, and the staff to deliver this.

There are no fees due to us, whilst we are at this stage

We then meet with you and discuss a way forward, which should put you in a much better position and answer your questions.

No fee is required as we are both still deciding, whether we like each other and whether we can add value.
Normally at this stage (or it could be later dependent on circumstances and advice required), a detailed written plan will be presented with the cost.

You then decide, whether we are adding value and putting you in a much better position then you choose whether to go forward or not.

The worst cause of Company Failure is the Company Director that does nothing.

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