If your company has fallen behind with its tax payments you may be experiencing severe creditor pressure from HMRC. The tax body acts very quickly to recover any arrears of tax, and can move to close down a company it believes to be approaching liquidation.
This video describes the best ways to deal with this type of pressure from HMRC, and how you can avoid enforced closure due to non-payment of tax.
Primarily you should contact HMRC as soon as you know you may not be able to make a tax payment on time. This demonstrates that your company is not simply avoiding payment, but is experiencing temporary cash flow problems that can be overcome with a little support.
Your financial difficulty may have been caused by events outside your control, such as a general downturn in the market or loss of a major customer. HMRC can offer businesses in this situation extra time to pay, but good communication is key to being able to access this help.
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This video discusses their Time to Pay (TTP) arrangement, which typically provides up to 12 months’ extra time to bring your business tax affairs up-to-date, and can help you avoid the hefty penalties applied for non-payment.
Other methods of dealing with HMRC creditor pressure include obtaining alternative finance to boost working capital – via invoice financing, for example. A Company Voluntary Arrangement that restructures multiple debts may also be appropriate if the company’s financial problems are only temporary.
Still unsure whether liquidation is right for your company? Don't worry, the experts at Real Business Rescue are here to help. Our licensed insolvency practitioners will take the time to understand the problems your company is facing before recommending the best course of action going forward based on your own unique circumstances.