Help for Directors

All businesses face the occasional financial crisis but when they become a critical problem you need to know exactly where you stand. In our help for directors section, you will find specific information for answering your questions around if you are insolvent, what you need to do if you are and how it will affect you.

Creditors Liquidation

What is known as Creditors Voluntary Liquidation is the process that most businesses must go through if they are insolvent. It can be a difficult time for everyone involved, so we have created this special section of our site to give you the important facts about CVLs in a clear and down to earth way so you can see where you stand.

Members Voluntary Liquidation

This is when your company is still solvent, but you (and your fellow directors) decide it is time to call it a day and retire or move on to the next stage of your lives.  With an MVL, you will release the assets and use these funds to pay off the creditors before returning the remaining funds to the shareholders.

What action can HMRC take

What action can HMRC take

HMRC Arrears – What steps to recover the debt will they take?

 

A common concern for most directors once they have fallen into arrears, is what action can HMRC take? HMRC are not quite the ogres their reputation sometimes suggests they are and these days they can be very helpful if you have problems. That said, they will want paying and they will follow their process.

What happens with arrears?

You could receive calls and letters from HMRC chasing the money due. Most likely, however, is that HMRC will make contact by written correspondence. This will go through various stages but will become increasingly threatening regarding the action they will take.

A good point to note is that once you are in arrears, HMRC will charge both surcharges and interest on any outstanding debts. These can soon add up and even become more expensive than the original debts.

The surcharge can be between 2% and 15% of the tax that is due depending on how many times you have defaulted on HMRC.

Further steps that HMRC can take are as follows:

Clearly the above is very concerning so you should look at a time to pay arrangement, a Company Voluntary Arrangement or a Creditors Voluntary Liquidation.

We are happy to discuss this with you further and offer a free 20 minute initial call to discuss your problems. HMRC arrears that have reached the collection stage are important and could seriously damage your business. 

 

transparent gif

If you think your business may be insolvent it is important to get help as soon as possible

Call us for a free initial discussion 

Leicester: 0116 232 5117 | Warwick: 01926 671 891 | Coventry: 02476 017 639 | Northampton: 01604 263 179