HMRC Arrears

All businesses have an obligation to settle liabilities as and when they become due. The same applies to HMRC liabilities which include VAT, PAYE, and Corporation Tax. When liabilities are not paid in a timely manner, and outside of the measures put in place for a limited period to support businesses through economic hardships, HMRC have several options available to them to assist them in the recovery of liabilities overdue to them. The consequences of HMRC taking such steps can be serious and may include the issuing of a winding up petition. If you are a business owner unable to meet HMRC liabilities, taking early and professional advice is essential.

If a business is late in paying its tax or is unable to pay, either in full or at all, then it will come to the attention of HMRC. It is important to remember two things:

  1. HMRC wishes to collect tax and does not want to see a business compromise its long-term future.
  2. One80 have dedicated experts on standby to work with businesses with HMRC debt to identify solutions to resolve the issue and secure a long-term future for the business.

Our Group’s reputation with HMRC is second to none, and as they become aware that a business is taking professional advice from us, they are likely to suspend collection and enforcement action to provide us with sufficient time for us to diagnose the exact problems faced by the business for us to and advise on the strategies and solutions available to resolve the matter. We know from our extensive experience that HMRC welcomes regular and considered communication, to help them understand the solutions being proposed and how they can work with those solutions to bring matters to a satisfactory resolution.

One of the solutions HMRC may consider is a Time to Pay (TTP) arrangement that gives a business the breathing space to pay off their arrears over a mutually agreed period. Our team of experts have substantial experience of assisting directors to prepare a robust and credible payment plan to demonstrate that arrears can be paid off and ensure that the business is entering into a commitment that it able to maintain. Our team can act quickly in such matters and is able to assist with your ongoing relationship with HMRC.

Inevitably, some businesses do not seek early professional advice and by the time they meet one of our experts, it is not possible to find a consensual solution, perhaps because enforcement action is at the most advanced stage of a Winding Up Petition. It is, however, still possible to find a resolution at this stage with the assistance of an insolvency process. Our team are accustomed to explaining the options available to you, which could include the preservation of a business through a voluntary arrangement with its creditors or through a rescue process such as an administration. In these instances, it is possible for a business to emerge from its difficulties and trade on, providing it is handled professionally and with transparency.

If Your Business has HMRC Arrears, take early professional advice

If you have accrued HMRC arrears and are concerned about the potential consequences, please get in touch with one of our experts. We offer a no nonsense, free of charge consultation where we will assist you with understanding how to resolve the situation, regardless of the circumstances of your business.