I can't pay VAT, I cannot pay PAYE! The company is behind with PAYE and VAT payments! What can we do?
If your business or company has not paid the deductions of PAYE and NIC across to HM Revenue & Customs (HMRC), then there is strong possibility it will take action against the business if it can't pay VAT or other taxes.
Basically, it's tax payer's money and the tax collectors are there to collect it, there are no grey areas, just black and white. After all, they have heard every excuse and know that you are in financial difficulty, or the tax would have been paid.
The introduction of Real Time Information Systems (RTI) from HMRC from 6th April 2013 as a way of paying your PAYE has made it impossible to understate your PAYE liability in the hope that you will be able to catch up further down the line.
What should I do if I can’t pay HMRC?
Request a Time To Pay deal (TTP) This allows you to pay back VAT debt over a specific time-frame, relieving some of the pressure. HMRC provides a ‘Business Payment Support Service’ for small companies struggling with cashflow.
What will HMRC want to know?
- Your name and the name/address of business
- Tax reference
- Contact number
- Details of tax you can’t pay (i.e. VAT)
- Why you difficulty in paying the tax
- What you have done in
trying to resolve this issue
- How much you can pay back right now
- How much time you think you’ll need to pay back the remaining debt
We can act on your behalf
As insolvency practitioners, we are highly regarded by HMRC and have negotiated many deals over the years. We can provide a financial forecast from your details and estimate the scale and time-frame you’ll need to pay back the debt. Call us on 0800 9700539 for expert advice.
What other options are there?
Short for Company Voluntary Arrangement, this is a formal deal with creditors that protects your company against legal threats and allows tax debt to be partially written off. A debt repayment plan can be arranged for over a number of years and the business can enter a restructuring plan to help cut costs and improve cashflow.
This is a very powerful tool in insolvency that allows the business to be sold on to a new company or third party, protecting the business against aggressive creditors.
If you are unable to commit to a Time to Pay deal or you need urgent advice, contact us on 0800 970 0539.
It is always best to act before you are threatened with legal actions as they could damage the company’s reputation. If you have already been issued with legal actions, for example, a winding up petition or distraint notice, act immediately! Call us now for expert advice.Source: www.companyrescue.co.uk