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 Voluntary 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 to do about HMRC arrears

What to do about HMRC arrears

HMRC Arrears

The reason HMRC arrears are so common is understandable. When a Company is under cashflow pressure and is left with the options of either not paying the staff wages key suppliers or not paying HMRC it seems the obvious choice to choose the latter option.

To make matters worse the chances are that, whilst you may get the odd call from HMRC or a computer-generated letter, there is a sort of lack of urgency about them. It’s also very easy to convince yourself that you will get back on top of HMRC, when things improve.

This is where the problems start. If you have areas with HMRC then our experience is that this is a key indicator that your Company may be insolvent.

The second point to make is that whilst it may be some time before HMRC takes action, they always will take action. They have a process, and they want to be paid, so they will follow that process up to and including winding up the Company.

The third issue is that Companies with long outstanding HMRC arrears of a considerable amount may lead to the directors being disqualified if the Company fails.

 

What to do if you have arrears with HMRC

I appreciate that these points are concerning but there is actually a lot you can do.

Sometimes it may be difficult to arrange a time to pay arrangement with HMRC and so we do offer a service to assist you with agreeing on a payment plan. Often the fact that an Insolvency Practitioner is involved shows that the director and Company has taken professional advice and the position is serious.

If you feel that a longer payment may be required, you may need to look at a Company Voluntary Arrangement (CVA). This can last between 3 and 5 years but does include all creditors. Click here for more information.

If you are concern about HMRC arrears and insolvency, we are happy to discuss this with you further. Call us and lets’ talk. We offer a free 20 minute initial call to discuss your problems.

 

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Find out more about our insolvency, liquidation or recovery service.  Learn how we can support you with clear, straightforward and empathetic guidance and support.

Call us on 0116 2967507 (Leicester), 01926 969000 (Warwick), 02476 0179639 (Coventry) or 01604 263179 (Northampton), or email us on info@smartbusinessrecovery.co.uk