There are many reasons why a business owner or entrepreneur would like to sell or close their successful business. It could be that they want to release some funds for their next big project or simply they have worked hard and have now decided it is time to put their feet up and enjoy the […]
Company Voluntary Arrangements (CVA) have had a lot of column inches over the last few years as a result of a number of high profile retailers having to restructure and look to exit expensive high street leases. CVAs have also been available to smaller companies in most business sectors and can be a viable alternative […]
In previous blogs, we have looked at the various processes HMRC will use to recover tax and VAT such as distraint, time to pay arrangements, issuing security notices and as a last resort, insolvency. As part of HMRC drive to improve tax collection and clamp down on companies and individuals seeking to avoid or evade […]
On 31 October 2018 we posted a blog on HMRC regaining preferential creditor status and the potential effect on banks and other lenders. HMRC recently commenced a consultation period which is due to expire on 27 May 2019. The consultation is being undertaken with a view to deciding how the new rules should be implemented […]
Whether described as disguised remuneration or tax avoidance schemes one thing is sure HMRC are clamping down and looking for ways to recoup their losses. In the past, as a way of avoiding income tax and national insurance, employees were given tax-free loans. HMRC have been cracking down on these schemes for some time but […]
One of the key points Philip Hammond delivered in his third Budget was the return of HMRC as a preferred creditor in insolvency cases. In 2002 the Enterprise Act removed HMRCs right as a preferential creditor and ranked it alongside unsecured creditors. At present, taxes paid by employees and customers are not always provided to […]
If a company or individual falls behind with TAX or VAT payments, there may be an opportunity to negotiate payment terms with HMRC, or enter into a formal Time to Pay Agreement (which we have looked at in a previous blog). Let’s assume that a company has been unable to agree terms with HMRC and […]
Where a company has fallen behind with Tax or VAT payments but hasn’t yet been passed to EIS (Enforcement & Insolvency Service), there is still time to negotiate a time to pay agreement (TTPA). A company can apply to HMRC for a TTPA if the debt has fallen due within the last 30 days. If […]
In this blog post we look at HMRC recovery processes and some of the practical issues that we see on a day to day basis when a company (or individual) falls behind with tax or VAT affairs. HMRC is more often than not the unwitting creditor in an insolvency process usually with a significant, if […]
HMRC are running a test case to challenge one of the traditional approaches of dealing with an overdrawn Director’s Loan Account (‘DLA’) when entering a Members’ Voluntary Liquidation (‘MVL’). At the end of a company’s useful life, if it is solvent, it is normal practice to place it into MVL to enhance the tax position […]