HMRC refuses a time to pay deal so surely they won't approve a CVA?This is a view we come across all the time!
When you have been talking to the enforcement department their primary objective is to collect 100% of the tax owed. This is fair enough. If they cannot collect 100% then they will take all necessary action. Winding up petitions etc. Many companies do not pay the tax they owe because they simply don't want to and would rather use the cash to fund further growth and the tax office is pushed down the list of priorities. As tax payers it is reasonable to expect the HMRC to be tough on these companies.
As a company voluntary arrangement is a formal insolvency process the "case" is then taken out of the hands of the enforcement department and is referred to the Voluntary Arrangement Service or VAS. Effectively a 100% collection is now unlikely so the judgement
If the company is still viable but HMRC doesn't accept any TTP offers then a company voluntary arrangement (CVA) is the best option. Although a formal insolvency tool it is a powerful way to restructure the business, the debts and buy a breathing space to recover from the cashflow shock.
Visit this page our page on detailed CVA
Just need to fix a cashflow problem with say PAYE and VAT? See this page for help!
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