If your company is struggling with HMRC arrears, such as non-payment of VAT, corporation tax and/or PAYE, the last resort for HMRC in chasing these debts is to use the services of a debt collection agency.
According to Gov.UK, HMRC currently use 13 different debt recovery firms that are instructed by the Revenue to collect monies owed. Invariably, this is done by seizing assets from the company premises to be sold off with the proceeds going towards the debt.
These debt collection agencies are as follows:
Being faced with a letter threatening action from an HMRC enforcement officer shouldn't come as a surprise to any company director. It is the usually the result of a sustained period of time in which your company has failed to meet tax liabilities on time. It is common for HMRC to make numerous attempts to recover this debt themselves, either by calling you or by sending letters to notify you that the tax is overdue, but if it remains unpaid it is then likely they will outsource the debt collection to one of their trusted debt recovery agencies based around the UK.
At Real Business Rescue, we help company directors facing financial distress and most of the time, this distress includes tax debts owed to HMRC for unpaid VAT, PAYE or corporation tax. It is often the way that HMRC are last to be paid; it is easy for directors to shelve their tax payments and, instead, pay trade creditors first and foremost. It is only further down the line that directors then realise they do not have the means to meet their company tax liabilities.
If you are struggling with HMRC tax or PAYE arrears, we offer a free initial consultation to all company directors in a Real Business Rescue office that is local to you. We specialise in helping directors with debts above £15,000 and can provide expert independent advice whether you're at the early stage of HMRC sending you an overdue tax letter or the more critical stage where HMRC enforcement officers are knocking on your door.
Contact us today for free advice from a licensed insolvency practitioner.
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