To, I have today seen and distrained the goods listed in the inventory overleaf at.
If you do not pay the debt and all the costs within 5 days from this date, I will arrange to sell the goods.
A Distraint Notice and Inventory letter from HMRC is an escalation of overdue tax payments that have led to the threat of them auctioning off your company’s assets in order to realise funds to pay the debt. An official visits the company’s premises and issues the director(s) or “responsible person” with the distraint notice and will document all valuable assets at the premises.
Once these have been recorded, there will be an option to agree to “walking possession”, which is where the HMRC official “walks away”, but holds possession of the goods. If the debt has not been paid after five days, HMRC can auction off the assets. If you don’t agree to a walking possession, HMRC can take away the assets immediately.
If you are in this situation, you potentially still have time to turn things around, even if you are unable to pay the debt or you need more time to put together a repayment plan. For example, solutions such as a company voluntary arrangement (CVA) might be accepted by your creditor(s) which is where the company pays the debt over three to five years and gives you breathing space from creditors as they would be unable to chase you for payment – it will all be taken care of within the agreement with no need to liaise with them at all.
Administration might also be an option if the business is viable going forward and simply needs restructuring.
In these circumstances, it’s best that you talk to a licensed insolvency practitioner as soon as possible – you can do this free of charge in a one-to-one setting at your nearest Real Business Rescue office.
21st August 2019
The government is to begin automatically enrolling businesses across the country onto a customs system designed to function if the UK leaves the European Union later this year.Read More
19th August 2019
Companies across the UK economy are “seriously underprepared” for a No Deal Brexit scenario, according to the interim director general of the Institute of Directors (IoD).Read More