Loose the H.M. Revenue & Customs Hounds.
In recent months I have seen a considerable rise in enquires coming from clients who are small businesses that owe £10-30k in taxes (due to either falling behind with their VAT or being unable to pay their current Corporation Tax) and whom are being chased daily by HMRC.
It seems as though a tactic adopted by many HMRC collection officers presently is to chase almost daily for payment and proposals and whom have become such a nuisance that the directors of these businesses want them to stop so badly that they would rather please their Company into Liquidation just to make the calls stop, rather than pay them off over time from profits and put up with the barrage of calls and/or visits.
HMRC Won’t Stop Chasing Me.
Now a Creditors Voluntary Liquidation does allow this to happen due to the ability to close a company writing off debts in the process and then allows directors to set up again with a phoenix company. However, ethically directors should do all that they can to ensure that if the company is likely to be able to pay its debts over time, then they reach a repayment arrangement and pay what can be afforded.
My view is that if HMRC are more commercial in considering repayment proposals and allow repayment over more reasonable periods as well as avoid bombarding directors of small businesses with calls then they would be far more likely to get a greater percentage of full payments and certainly less losses due to insolvencies such as Liquidations. Not to mention the effect that constant pressure on directors for repayment of debts can have an adverse effect on motivation, focus and profitability generally.
If you have clients in a similar position then get in touch as we can assist in negotiating repayment plans (buying time to repay debts and space to focus) as well as stepping in to provide cheap liquidation services when clients have had enough.
Call us on 0800 612 6197 for more information or visit our relevant pages by the links below
Categorised in: Insolvency Reviews & Advice, Latest Insolvency News, Liquidation News, Services & Solutions
