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Raising finance to help pay HMRC debt

Date Added: 18/02/2016  

HMRC is a powerful creditor. If your company owes money to HMRC, in the form of PAYE, NIC, VAT and Corporation Tax, and you are paying late and/or not in full each time a payment is due, then it is time to take some action because you are probably trading insolvently.
If you don’t take action, chances are that the debt to HMRC will continue to grow, and as unsecured creditors, HMRC, whose legally enshrined duty to the government is to maximise tax collection to fill the public purse for public expenditure, will at some stage issue a winding up petition. This is a very serious matter, and often leads to a winding up order and liquidation.
One of the ways to avoid getting to the stage when the winding up petition letter from HMRC drops through the door is to take early action by taking advice about raising finance to pay the debt off from us ar 4r.
Raising Finance to Pay off HMRC Debt
As Business Turnaround Specialists, we know how distressing mounting debt can be. We also know that the single most important reason why small businesses in the UK often struggle to grow is due to inadequate funding and cash flow along with poor financial control systems.
It’s perfectly possible that an on-going (and maybe growing) state of indebtedness to HMRC (or indeed any other creditor) is the result of a short term blip, which is really dragging a business down, that is otherwise a going concern. Of course, the problems may be deeper than that, but one of the first things we will look at, having assessed your businesses’ true position, is the possibility of raising funds to pay the debt off.
Inevitably, there are a wide range of sources of finance, and not all will be right for any specific circumstance. It’s knowing the right direction to go in that really counts, which is where we come in. In our experience, two good options worth exploring in this scenario are:
-          Asset Based Finance. Here, money is raised for working capital and term loans that is secured against accounts receivable, inventory, machinery, equipment and/or property. If this is right for you, we know the best people to go to.

-          Commercial Funding Solutions. One method is if you have a sales ledger and have outstanding invoices you can get up to 80% of the invoice paid within 24 hours, freeing up cash that can be used to pay off HMRC. Spot finance is another option for a short term cash injection where we can arrange for commercial finance to provide up to 80% of your invoice(s) as a one off rather than an ongoing funding arrangement or even for just one invoice for a month as and when you need the cash.
If, after getting to know you and your business, either of these two sources is right to help you pay off HMRC Debt (sometinmes known as Crown Debt) or any other creditor, then that’s what we’ll recommend. We’ll then get on and make it happen.
What if Raising Finance to Pay the HMRC Debt is not possible?
If the underlying problem is more serious and raising funds to pay off the debt is not an option, then all is not lost.
We have successfully protected many businesses through the use of Company Voluntary Arrangements, Administration Orders and Liquidations to resolve HMRC debt problems.
Even if a winding up petition has already been received, we will help you apply to the Court for an adjournment or instruct recommended solicitors to try to convince the Court to dismiss the petition, while working with you to solve the underlying problems that were the cause of the debt in the first place.
If You Are Struggling to Pay HMRC Debt, We Can Help

The sooner you contact us to help you resolve your problem the more time we have to help you. If the debt problem can be resolved by raising funds through Asset Based Finance or Commercial Funding, that is what we will do.

We are experienced in providing the right advice to you and your business to turn things around, and the sooner you talk to us, the more we can do to help.

Contact us, or call us on 0800 902 0123 straight away for a free initial discussion.

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