Tax, HMRC and VAT Help Advice and Support Service

Written by Keith Tully

Falling behind on paying taxes can be one of the most stressful times for the directors of a business. There may be a solution to bring you current. Take a deap breath, and then pick up the phone and give us a call!

So many businesses call on us because they are unable to keep up with taxes including HMRC and VAT. The bad news is that this probably means that company is insolvent, but the good news is, there may be help on the horizon. Real Business Rescue is expert in helping insolvent companies find solutions to their debt woes.

Even so, be advised that if you even suspect your company of being insolvent or on the verge of being so, it is imperative that you stop trading at once. Wrongful trading penalties can be severe so contact us as soon as you notice problems paying any taxes whatsoever including PAYE, NIC, VAT contact Real Business Rescue Help, Advice and Support Service. We can consult with you, initially free of charge, to help advise you on the support service or services you need.

Four Ways to Deal with Delinquent Taxes

When seeking VAT debt help and advice, the first question many businesses ask is in regards to being bankrupt. Many business owners fear that being delinquent in taxes automatically means that government will pursue bankrupting their company, but bankruptcy is the solution of last resort for HMRC. It stands to reason that there may not be enough in proceeds from liquidating a bankrupt company to pay arrears, so it is logical that they would want to make some kind of arrangement with you.

The first thing to do when unable to pay taxes on time or in full is to contact an insolvency practitioner for advice. Since there are a number of approaches which can be taken, it is imperative to find one which is realistic for your business in its current financial state. Obviously it would be great not to necessitate going through the courts, and some solutions do allow for a ‘private’ or informal solution.

At Real Business Rescue, we can discuss your options whether you are having problems paying your corporation taxes or any other taxes due. Here are four very broad ways in which to deal with delinquent taxes, and a better understanding on each can be found throughout this website.

1. Inject money into the corporation through financing or investments
2. HMRC’s Time to Pay Programme
3. CVA (Company Voluntary Arrangement)
4. Administration as a last resort when HMRC is threatening legal action

If your company is having issues with PAYE or any taxes whatsoever, it is incumbent upon you to act quickly and responsibly. We can’t tell you often enough how serious it is to continue trading if your company is deemed insolvent. Bear in mind that government wants you to succeed in your business endeavours and will most often work with you to help facilitate turning your business around.

Asking HMRC for Time to Pay

No one likes to deal with the taxman and this, unfortunately, includes companies. However, there is a little known fact which should be encouraging and that is that there are over one-quarter of a million businesses in the UK on some sort of payment scheme with HMRC. Yours is not the only company in trouble at the moment and if government weren’t willing to work with you, they would be losing a great deal of revenue. Through the Business Payments Support Service, it is possible to set up a ‘reasonable’ payment plan that will give you time to catch up.

By reasonable the government usually means from six months to perhaps a year or year and a half, depending on the amount in arrears. You need to remember that there will be strict penalties imposed if payments are sporadic or typically late. The taxes to be concerned with are all of them including PAYE, NIC, corporation taxes as well as deductions which should be kept up with such as for student loans and those for the construction sector.

The Bottom Line: Avoid Winding up Petitions

As a business owner or director, it is imperative that you avoid HMRC petitioning to wind up your business. They have instituted a helpline and Time to Pay Scheme so that you can find answers to your payment issues. If you think your creditors are serious when it comes to delinquent payments, know that HMRC is even more adamant in their efforts to collect. This is especially important if they even suspect that you are insolvent and still trading. In the UK this is a serious offense and one which should be avoided at all cost.

Whether you are having problems paying VAT or simply unable to pay them on time, get help and advice from licensed IPs at Real Business Rescue. We can help negotiate the payment strategy with HMRC as well as taking care of all communications written and oral. Since it is critical that you not be accused of wrongful trading, it pays to have a team of experts at your disposal. This enables you to continue running your business (except under administration) so that you don’t have the added worries of dealing with the taxman.

One final word of warning should be given. Be realistic in your arrangements with HMRC because there are also consequences for not keeping your end of the bargain. If you receive the dreaded 7 Day Warning Letter this does not bode well for you! Don’t be too optimistic in your efforts to catch up arrears with the government. It is better to be safe than sorry and if cashflow is a problem in today’s economy, it may be the same in the next 12 to 24 months. Let our team help you plan realistically so that you can keep to the Time to Pay Scheme arranged for you. It pays to keep the taxman happy!

Author: Keith Tully

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