If your business owes money to HMRC, whether you are self-employed or a company director, you could be facing financial uncertainty, and anxiety about your own future as well as that of your business.
Falling into arrears of business tax and National Insurance is a stressful situation, compounded by the fact that HMRC tend to collect their debts very quickly and with great determination.
So what should you do if faced with this situation?
Seek professional help to deal with HMRC debts
A strict penalty regime, detailed tax investigations, Accelerated Payment Notices (APNs), and stringent enforcement measures, are all very difficult to deal with, especially if you are already experiencing significant financial pressure.
UK Debt has vast experience of dealing with HMRC. We understand their systems and processes and can offer valuable insight if you are struggling to repay. All you need to do is call one of our licensed insolvency practitioners for a free same-day consultation, and we will provide valuable help and support.
So let us look at some of the common situations where HMRC debt can cause severe financial distress to businesses and their owners/directors.
Accelerated Payment Notices (APNs)
Accelerated Payment Notices are used if HMRC believe you have been involved in a tax avoidance scheme. They notify you of the amount of tax you owe, but with only 90 days in which to pay, this creates a high-pressure situation that can result in insolvency for many businesses.
Arrears of business taxes and National Insurance
HMRC run a strict penalty regime for late or missed payments of tax and National Insurance. Penalties and additional interest can mount up very quickly, increasing debts to the point where they seem unmanageable.
How HMRC enforce their debts
HMRC enforce their debts very quickly, and in some instances have the power to recoup money without a court order. Initially you will receive a payment reminder, quickly followed by a Notice of Enforcement if you do not pay.
HMRC might send bailiffs in to seize your business assets under The Taking Control of Goods Regulations, or if the situation is still not resolved, can petition for your personal bankruptcy and/or wind up your company.
UK Debt can help you deal with HMRC debts
- We can check that HMRC hold the correct information about your business, and that communications from them are valid. If there are grounds for appeal, our expert team will provide guidance and support to ensure you have the best chance of success.
- UK Debt has contacts with over 50 alternative lenders around the UK. A cash lump sum or regular monthly cash injections could help you deal with your business debts, or escape insolvency if you have received an Accelerated Payment Notice.
- If your business has already entered insolvency, we can assess your eligibility for various statutory processes that could help you carry on in business, or perhaps escape personal bankruptcy if you are a sole trader or a company director facing personal liability.
- Our experienced insolvency practitioners will negotiate with HMRC on your behalf if necessary, for extra time to pay. A formal Time to Pay (TTP) arrangement can ease your financial situation by allowing you to repay HMRC debts over a longer period. You would need to keep current payments up-to-date, but a little extra time often provides the breathing space needed to regain control and escape HMRC debt.
UK Debt provides reliable, unbiased advice and information, offering professional expertise at a difficult time. To obtain more information or arrange a free same-day consultation, please contact one of our experienced team. We will quickly establish your situation and recommend the best options.