7 day warning letters being issued by HMRC

23 July 2012

We are hearing about more companies that are not able to keep up with their time to pay payments and HMRC are beginning to issue 7 day warning letters of a winding up petition.  However, all is not lost if you have been refused time to pay VAT or PAYE.

Just because enforcement say you have to pay all the tax this does not mean to say that HMRC will not negotiate.  See our page on HMRC Enforcement and the Voluntary Arrangement Service or VAS

A CVA can be used as a rescue tool to allow a proportion of the unsecured debt to be paid off over time, the remainder is written off. If you start to make more money than envisaged then in the CVA proposal a higher dividend can be paid the creditors. So basically you are not "pulling a fast one" over your creditors and your reputation should not be damaged. Besides, in order for a CVA to be approved you will need the backing of 75% of the creditors (by value) anyway. Another plus is that there is no statutory requirement for you to tell your customers that you are in a CVA, which is not the case with administration

What about tendering?

We can arrange for a hive down that allows the company to tender for contracts. See this page on hive downs:

https://www.companyrescue.co.uk/cva-company-voluntary-arrangement/hive-down