If your business is struggling to keep up with tax payments, then it is likely the company is insolvent. You may have already missed payments when they fall due or you know you won't be able to pay the next VAT or PAYE bill.
While this is a problem, it doesn't mean there's nothing you can do about it. The quicker you act, the better. If you just let the debt build up, HMRC could take legal action against the company.
So what are the options?
Time to Pay deal (TTP) - This is an informal arrangement with HMRC, giving you the opportunity to spread debt repayments over a few months up to a year. We can call to arrange on your behalf (we talk with HMRC every day!) or you can contact their Business Payment Support Service.
HMRC will need certain information, including tax references, contact details and reasons why you can't pay on time. Judging by how much you owe and how you will be able to make future repayments, HMRC will assess your position.
Company Voluntary Arrangement (CVA) - This is a formal deal between the company and its creditors, allowing you to repay debt over three to five years as well as restructure the business. A CVA can stop legal actions and help to turn around the company, cut costs and improve finances.
Pre-pack administration - This is very quick and effective process where the company is sold to to a third party or new company on the appointment of administrators. A pre-pack ensures the business continues running and jobs are safeguarded, keeping the reputation intact.
If you're not sure what to do next, contact us on 0800 9700539 and we'll talk you through all available options for your business. Don't ignore VAT/PAYE payment problems, they will only get worse.