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Limited company HMRC debt: deal with it TODAY

Date Added: 05/01/2016  

HMRC debt is serious and will inevitably lead to sleepless nights, especially if the business owner is not facing up to the problem and is avoiding talking to HMRC. Many business owners don’t even tell their immediate family members about their HMRC debts, making their situation incredibly stressful.
 
Will I lose my business?
 
The good news is that if you take action earlier rather than later then your business can almost certainly be saved. There are a number of different solutions, including debt management and banking options that will help you to pay the HMRC debt.
 
What should I do if legal action has already started?
 
If you’ve already received a Statutory Demand, a Winding Up Petition or a Winding Up Order, then you need to act NOW. The sooner you face up to this and take action, the greater the likelihood that your business can be saved. Don’t be one of those business owners who look back with deep regret, wishing they had done something sooner to secure the future of their business. Firstly, if you have been avoiding talking to HMRC then you need to engage with them. However, if you are worried about picking up the phone, then speak to a business recovery service first, who can advise you of your options, and the best course of action.
 
Time to Pay arrangements: an option for limited companies

If you can pay off your HMRC debt within six to twelve months, or possibly slightly longer, then you should be able to get an HMRC Time to Pay arrangement or TTP. However, HMRC takes debt collection very seriously and will only agree to this if you can still meet your ongoing tax obligations as well as paying off your existing debt.
 
Is asset finance a possibility?

If your company has assets then you may be able to secure finance to pay the debt by using equipment, stock, company vehicles, property or even unpaid invoices as leverage to secure funding. Even if you have already arranged this kind of funding, it is often worth seeking advice as the lending could potentially be restructured to release additional funds.
 
What if insolvency is the only route forward?

It’s worth talking to a specialist to explore your options, but if insolvency is the best solution, then there are a number of different routes you could take. These are:

·         Liquidation
·         Pre-pack Liquidation or Business Phoenix
·         Administration
·         Pre-pack administration.
 
To find out more about these options, our 4R Business Recovery HMRC Debt Guide explains these in more detail.
 
If you’re ready to discuss your HMRC debt with someone who can help, or you’re worried about talking to the tax people, call 4R now on 0800 90 20 123. Remember, the quicker you act, the more options are open to you. Alternatively, you can get in touch via our contact form.

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